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Yeah matey, will work with both compressed and uncompressed, windows sees it as another hard drive installed, it doesn't really care if it is external or not, the only thing affected is the transfer speed, but if you buy a fast enough HD then you won't really worry about it
As for the defragging mate, i have had the drive approximately 10months and windows still says i don't need to defrag, but i do anyway and takes approximately an hour, normally start defragging just before i go out and leave it. I store all my mp3's docs and pics on it, doesn't use up my internal space and can access when i want I would definately not be without it!! Also have a look on ebay, i have just found an Maxtor 300gb external drive with 16mb cache with all power supplies, cables etc for approx $210 canadian, the exchange rate i used was approximately $2 cnd to the £1, mate that is cheap as chips as they say in Uk. I paid the same price for a 200gb 10 months ago and thought that was good. Honerstly mate they are a godsend and once you get one you will wondwer what you did without one!!! if you want an ebay address for them let me know
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