So this afternoon I plugged in the external 40GB drive with the laptop already on. No errors. Then I shut the laptop off, left the drive plugged in and turned the laptop back on. Same thing, no errors.
I then tried moving a large file, about 2GB in size and had no problems with it. So that was good news as I would rather tote around the 40GB drive than the 500GB drive when I am out and about. It also is larger than the little flash drives available so it works out nicely.
I will be sure to post any issues I may have if I do!