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Another option is a hybrid SSD drive/hard drive. The Seagate Momentus XT includes a 4 GB SSD that speeds startup while the disk offers capacities up to 500GB.
Simply adding memory - upgrading to 4GB RAM can really help performance.
You can now have your personal cloud. Run an Ethernet cable from the Pogoplug to your home router, install a bit of software on your main machine, and you can backup your choice of folders to the USB drive.