i use WD and Hitachi but in my experience WD is my preferred brand
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I'd recommend the lacie rikiki USB3 : More and more motherboards have USB3 so it will become more and more useful, it's a 2.5" so you don't have to worry about external power source, it's pretty small and you can have 1To (although the 1To one is a little bigger).
For an external drive I strongly suggest Western Digital, also I would advise against USB 2.0 since you would regret not getting a USB 3.0 later on.
Since no one has mentioned it I'd check out NewEgg.com and check prices there compared against Amazon and Best Buy. Most of the time I find them to be the cheapest overall and their customer service is very good. I've ordered tons of items from them, mostly computer related parts, and only ever had one defective product sent to me. The return process was painless and they pay for the return shipping and reshipment of a replacement if that is what you want.
As for the debate between Seagate and WD I am personally a fan of WD. I haven't had any problems with the HDD's I currently own. I have two Black Caviar 1TB HDDs and a USB 2.0/3.0 2TB WD External HDD. By the way, USB 3.0 is wicked fast. I can't wait till it is more widespread in the next year or so.
go to staples.com search for biggest hard drive you can find, like put in "2tb hard drive"... lơok for a really cheap one that's fairly decent (with reviews, reputation)... then go to gơogle.com and search for staples coupon, go to that website, buy the one that fits the best like there are ones that give $30 off $150 purchase or $25 off $100 or so... grab the best one and buy it, they send you a coupon right away, usually in your inbox. Now use the code in staples.com checkout and you will have a really gơod deal on hard drives all day.
Did You consider WD MyBook WorldEdition?
As an addition it can be used as a seedbox.