It really depends on the situation.
Flash drives are great because they can fit in your pocket. I got my 16GB flash drive for 20 bucks a few months back. I use my flash drive for basic computer fixing stuffs. Various antivirus, anti spyware, Service Packs, Drivers, etc.. I actually never leave home without it. I've actually sat in a bar fixing someones computer real quick and got a couple of free drinks out it.
Of course if you need something to hold a bunch of files and transfer them from computer to computer, like your music collection, pictures, etc... then an external HD is the way to go.









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