External or internal storage for file server?

I was thinking of using one of my old computers as something to stream stuff to my HDTV, however, I'm wondering whether I should use external hard drives or internal ones? Or does it really matter? I guess with external ones, you need to hook them up to a power bar, and internal ones you need to have the room in your case to put them.

How do most people set something like this up?
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More about external internal storage file server
  1. Try FreeNAS with internal disks, USB uses more interrupt usage and has high latencies; but it should be ok for streaming HD-content as that's not much bandwidth generally.
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