What size external hard drive should I purchase

What size external hard drive should I purchase?  I'm not tech savvy, so please speak slowly.  I'm looking at OWC Mini Stack Classic to match my  older Mac Mini.  Do I need 500 GB, 1 TB or more?      Plus, I have to add memory to upgrade to Snow Leopard.  How much memory do I need and should I have an expert install it ?
Mac OSX version 10.5.8
Mac mini 3.1
Processor 2 GHz Intel Core 2 Duo
Memory  2GB 1067 MHz DDR3
1 Processor
2 Cores
L2 Cache 3MB
Memory 2GB
BUS Speed 1.07 GHz
Boot ROM Version MM3.1.0081.B06
SMC version 1.35f0
Hard Drive
Format MAC OS Extended
Capacity 297.77 GB
Available 238.69 GB
Used 59.08 GB on disk

Good points raised by all.
In my mini configs - both older and newer flatter model - I have kept their ministack external drive on top of the mini; with 3 or 4 little rubber feet added to the mini's base to give it a bit more elevation from the surface they are sitting on and a bit better chance to breathe. I'm not impressed by the very small air intakes on the bottom and the hot air that often comes out the back or how warm the case feels. Especially in the heat of summer.
I do turn the ministacks on/off as needed (primarily for backups once a week) as they're not entirely quiet and sometimes seem to have a low hum vibration. Nothing crazy. I just like it as dead quiet as possible sometimes. Plus the fan does not turn off even if the mini and ministack drive have shut down.  The newer wide & slim model does seem a bit quieter than the older model.
Check through system profiler to see if your system has 2x1GB or 1x2GB. Most likely it is 2x1GB and you'd need to remove both to double your ram. On the off chance it has a free slot; a single 2GB stick would get you to 4GB. Check on the cost difference between the 2x2GB kit and a 2x4GB kit.  I have an older core duo mini that functions fine with 2x2GB of RAM and 10.6.8. But, if you plan to continue to use the mini for several more years as a primary machine including upgrading the OS to Yosemite; it might not be a bad idea to just max it to 2x4 8GB. Yosemite really likes RAM to maximize performance.
Along the lines of keeping the same mini and doing upgrades. The biggest speed improvements are made by replacing the original internal hard drive with a flash drive. Of course this is a more technical upgrade, you really need to take the mini apart more and you have to weigh the cost of the upgrades and possibly paying somebody to do them; vs the cost of a newer system which would have a significantly faster processor and other improvements.

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