Using External SSD as Primary HDD?

Hey everyone,
My current hard drive is constantly grinding away, and I know it won't last much longer. I need my 500 gigs of space, but can't afford the outlandish $1800 for an internal SSD with that much space.
Is it possible to just buy a standard external drive like a WD Passport for a hundred bucks and utilize this as my primary drive instead of the internal?
If so, will I be reaping any speed benefits comparable to a standard internal SSD? Or is the fact that the external connected via FireWire or USB going to be slower than the SATA Connection of my iMac?
Much obliged...
- Chris

Assuming your internal HD is in good shape the performance will be similiar not identical. If your internal drive isn't in good shape then you will probably see some improvements. When you say "7200 grind machine" are you saying you can hear it making noises? Here is a link to what failing HD's sound like:
http://datacent.com/harddrivesounds.php
If yours sounds like any of those you should get it replaced. At the very least you should check it's S.M.A.R.T. status in Disk Utility (it should be Verified) and you can also run Apple Hardware test. You don't say in your profile what iMac you have or what version of OS X you are running so I can't give you the correct link on how to run AHT.

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