What to do...

Alright, my computer is an old IBM with 10g of space. When my brother is putting stuff on his ipod he has to delete stuff off the computer immediately so it isn't completely full. Right now I have 245mg left and it is really starting to piss me off. My uncle bought me an 80g external hard drive, so I'm wondering if I can put programs on that, such as videora, MSN, or even itunes and full libraries and keep everything working well? And if so, how can I do this? Could I get the ext. HD to work as my normalHD? Or do I have to get a new one?
 
On an older computer, I don't think that you can boot off of an external drive, but there is no reason you can't run programs such as iTunes, etc off of it. It might be a little slower, though. I have some old 40GB drives in good working order if you're interested, or you can get a new 80GB for $50-$60 I think.
 
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