This is certainly a "how long is a piece of string?" type questions. Hard Drive storage is dirt cheap at the moment, have a look at the prices and work out which represents the biggest bang for your buck. Very high capacity drives tend to go for a premium, so betting something in the 200-250Gb range often works out cheaper per Gb.
I find external drives more flexible for longer-term storage and I've got several LaCie 250Gb USB2 drives which I can swap between laptop and desktops.
A 250Gb internal drive will cost you under £70 (unless you insist on shopping at PC world) a similarly sized external HDD will cost about £30 more. Many of us will spend this sort of cash on a 2Gb CF card, so it represents very cheap storage indeed.
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