What is good price for Hard Drive (40GB for $29 ?)

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Circuit City has 40 GB Harddrive for $29. I rely on http://www.dealsofamerica.com for bargain recommendation. They usually mark hot deal if its around $0.50 per GB.
Is there any good rule of thumb as to what is cheap and what is not ?
Another question I have is wheather I should by external or internal Hard drive ? External is expensive but has its own advantages...
For now I am looking for cheaper hard drive around $20-$30 and I can get enough disk space to watch movies.
 
HDs being cheap as they are, you should look for something like a 120GB disk with 8MB cache, rather than a puny 40GB. You get more value for your buck with them.
 
You probably aren't going to find any drive less than $50. Of course, it's hard to find 40GBs anymore.

Don't get me wrong.. It's a great deal. But will 40GB be enough to store movies? Depends on you...
 
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