actually HFS+ volumes (OS X's native file system) can now read/write/execute natively to NTFS applications via ntfs.progs from sourceforge.net and you can even image windows OS onto a mac with bombich's awesome app netboot.
1) will the macbooks work well with ext. hdds?
Yes, in fact they have FW800, FW400, USB2.0 and can use any for external HDs
2) can I convert MS Office files from the Mac to Windows easily?
Not only can you do that with ease, you can do it with FOSS (free open source software)
check it: You also do not need to convert anything, it will natively read the .doc format. Now if you are using the new (office 07) .docx format I am not too entirely sure, but XML is suppose to be universally supported.
http://www.neooffice.org/neojava/en/index.php
3) Would it be good for this type of work?
A computer is a computer and how you use it is how you use it. Personally, i do find myself more productive on a Mac because of how it runs, but that is just me. Plus I hate vista.
4) How much would the student discount apply?
The standard Apple student discount is about 10% but they run deals all the time. The ran one last year that gave you a free ipod shuffle and a free printer with a purchase of a new laptop for students only. of course the educational discount also applied. Also, some campuses have their own apple stores with their own deals. I would check out your campus first.
5) If not this, what do you suggest?
You gotta make your own decisions, but I suggest you find someone you know who owns a mac and play around with it. I think generally most people who try out a mac will like it, the problem is no one wants to take the time to learn the differences.