I am trying to setup my apple tv2 for a movie library and am uncertain of what to use for a storage device. The computer im using for home sharing is a 2006 white iMac with osx10.6.8 that's 2.16 core 2 duo. That computer only has a 250gb internal hardriver that's mostly used up. I am wondering if I should buy a new 1 tb external hard drive that runs at 7200 rpm or should I make space on my Macs internal? The only way to connect an external hard drive is either by usb2.0 or FireWire 400. Now I tried on an old 500 gb 5400 rpm western digital for the storage device but the movie load times were very slow along with dropouts of the movie. If I wanted to fast forward or start a movie from we're I left off it would not load. All of this did work on the internal drive on the Mac seamlessly. So back to my original question would buying a faster newer external solve the problem or I would this still happen because it's external and only using usb2.0?