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internal vs external hard drive on old MAC

I have a MAC Quadra 650 w/32MB RAM, and the original 230MB H-D. The local shops want about $400 to install a 2GB internal drive. For that $ I can mail order an external drive, which I can use on later machines. What would an expert do, w/pros & cons.
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Will an external drive prevent me from having a scanner or zip?
No, the SCSI bus supports up to 7 devices in total.  Intenal or external, it doesn't matter.