If your conneting your External HDD through USB then it is definetly slower than your internal HDD that is connected by IDE or hopefully SATA. If you have an eSATA connection for your EXTERNAL HDD then the speeds should be the same.
Im pretty sure you dont need to seed at a faster rate than a usb can transfer so im sure seeding from an external hdd is fine as speed isnt a issue.
Instead of paying crap loads for tiny external hdds you can just purchase a full size internal HDD and then an external case with either USB or eSATA, this gives the advantage of being able to hot swap your drives too.
480 Mbit/s <<< thats the transfer speed of a USB 2.0 port
1500 - 3000 Mbit/s <<< thats the transfer speed of a SATA port
160 MBits/s originally
later 330, 660, 1000 and 1330 MBits/s <<<<<< IDE Transfer speed.

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