[quote name='Chambered']Pros for External drives
-Less 'wasted' space taken up by PS3 resources
-More storage space
-Less worry about excessive heat due to a higher RPM drive
Cons
-4GB max file size (I'm not sure how big the individual files are on blu ray movies, but the full movie is typically around 20-25GB on a single layer disc).
-Can't run game saves or demos off of the external
-Can't store PSN downloads to the HDD
-Takes up more physical space
-Uses one of the limited USB slots
I wouldn't waste my time attaching an external to the PS3, unless it was just for tiny stuff like a bit of music or pictures or something. For movie storage, you're better off just streaming it from a PC across your network so you don't have to deal with the limitations.
The external HDD features are mostly intended to be used to back up your PSN HDD for when you upgrade or replace it. It's not meant to replace (or even extend) the PS3's HDD.[/QUOTE]
Thats fine and all, but I have a question.
The drive is FAT 32 partitioned when its installed anyway so the same size limits are there, are they not?
As for the streaming thats the best route actually.