Lion-compatible External HD?

I'm shopping for an external portable hard drive and find in reviews that some are not Lion compatible.  I'm looking for recommendations of a drive that will work with Lion on my macbook, and with Time Machine, etc...  Thanks for the input!

Any that use the Oxford chipsets should be fine. If a drive system isn't Lion compatible then there's a problem with its hardware/firmware.
I'd suggest you build your own. You save a little money doing so, and get to pick the components, and it usually takes about five minutes with a small screwdriver.
Basic Backup
Get an external drive at least equal in size to the internal hard drive and make (and maintain) a bootable clone/backup. You can make a bootable clone using the Restore option of Disk Utility. You can also make and maintain clones with good backup software. My personal recommendations are (order is not significant):
Carbon Copy Cloner
Data Backup
Deja Vu
SuperDuper!
Synk Pro
Tri-Backup
Visit The XLab FAQs and read the FAQ on backup and restore.  Also read How to Back Up and Restore Your Files.
Although you can buy a complete external drive system, you can also put one together if you are so inclined.  It's relatively easy and only requires a Phillips head screwdriver (typically.)  You can purchase hard drives separately.  This gives you an opportunity to shop for the best prices on a hard drive of your choice.  Reliable brands include Seagate, Hitachi, Western Digital, Toshiba, and Fujitsu.  You can find reviews and benchmarks on many drives at Storage Review.
Enclosures for FireWire and USB are readily available.  You can find only FireWire enclosures, only USB enclosures, and enclosures that feature multiple ports.  I would stress getting enclosures that use the Oxford chipsets especially for Firewire drives (911, 921, 922, for example.)  You can find enclosures at places such as;
Cool Drives
OWC
WiebeTech
Firewire Direct
California Drives
NewEgg
All you need do is remove a case cover, mount the hard drive in the enclosure and connect the cables, then re-attach the case cover.  Usually the only tool required is a small or medium Phillips screwdriver. OWC even sells enclosure kits with tools or you can buy a small toolkit inexpensively.

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