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External Hard Disk
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Is an external hard disk (connected via USB2) going to be sutiable and fast enough to playback video stored on it?
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For more on marking an answer as the "Best Answer", please visit our FAQ.Depends on quality (bitrate) of video, as you can stream video smoothly over the internet (a much slower connection) but it's rubbish.
Consider a removable hard drive caddy (http://tinyurl.com/5fotr), with XP you can just drop disks in and out and it fits into a 5.25" rack (same space as a CDROM drive)
Access speed will own you as well.