Should I add external hard drive so I can update to os10?

I was trying to get a new printer for my 266 slot loading I mac. A mac nerd at Fry's said I could connect an external hard drive (USB) and move my applications to it which would free up room on the imac to load os10 (I assume Panther). Does this sound feasible? I have 256 ram. Do I need more ram than that??I'm not a techie but have a son who is a mac addict and could help. (new printers mostly want os10)

Your iMac 266 has the old/slow USB 1.1 bus, and it doesn't provide a bootable option for an external hard drive. Even running applications from it would be slow, so I wouldn't advise doing that, just to free more space on the internal hard drive for an OS X installation. A larger internal hard drive is a more viable option, but does require mechanical aptitude for disassembly of the iMac. You'd need to install more RAM for OS X, and lacking onboard FireWire would rule out the current OS 10.4.x (Tiger). You'd probably have to settle for Jaguar or Panther. If you add the costs of the OS X installer CDs, more memory, and new hard drive, you could be applying the same $$ toward a newer (even used) Mac.
What type of printer do you need/want - inkjet or laser? As an alternative to upgrading the iMac, have you considered purchasing a used printer, that would be compatible with the iMac and its pre-OS X software? As an example, the (now-discontinued) Epson Stylus Color 740 or 740i is a good, photo-quality inkjet printer, that's supported for use with Macs via USB and the older serial interface. It's also compatible with PCs via the parallel port interface or USB, so it can be shared between the two platforms. I've purchased 5 or 6 of these printers (used) at thrift stores, because I've always been satisfied with the one I purchased new in 2001. They're more than adequate for most print jobs - including very satisfactory color photo printing, and cost me less than the prices of the replacement ink tanks. If there are any thrift stores in your area that accept donated computers and related peripherals, you might want to check them out for one.

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