Just think of your exernal as another hard drive in your computer. I works just the same way. As with any hard drive tho, make sure to back up those files to some other place or thing. Personally I don't like using CD's or DVD's, they just are not lasting long enough. So, use a second exteral if you don't have room on your laptop or use an online storage. I'm finding the floppys not as well made as they used to be also. And yes, Embird is a very cost effective product. There is the basic module that is the viewing and editing one, then you can add as you desire the other modules. I have the font engine and love it. There is also the digitizing module. Also there is so much help avail for the program. Whole yahoo groups and all kinds of both free and paid for lessons. I've been really happy with the upgrading also. They do upgrades for a year or two for free, then the major upgrade is only $15. Not bad.