How much data are you transferring? Is the data stream compressed or raw video/audio? If your notebook has a CD-RW, I would recommend chopping the data and burn it to a disc(s) if at all possible.
As to external storage. If you can plug in a few wires, you may be able to save yourself several dollars by using an aftermarket HDD enclosure. This would allow you to purchase any cheap 3.5" IDE drive, thus possibly saving you upwards of $100-150.
I recently reviewed on such unit here at TechIMO:
http://www.techimo.com/articles/index.pl?photo=82
Also, you will definitely want a Firewire or USB v2 compatible HDD enclosure to maintain enough transfer bandwidth to make this project a viable solution.
Good Luck,
Robert Richmond