I had a problem with my External HDD unit also. It worked for a week and I paid $285 for it, mainly because of UPS shipping. One of the wires in the cable that connects the HDD to the PS2 broke. Since it would cost more for a new HDD than a new PS2, I sold my model 10000 to someone who wanted to play imports without a modchip and used the money to get a model 30000 PS2. I then ripped the hard drive out of the external unit, plugged in the appropriate jumper caps, bought a broadband-only Network Adapter from a Linux Kit user, and ran my PlayStation BB Navigator disc on the new PS2. I have had no problems with the HDD since. So far, I am the only person I know of to convert the external HDD to an internal one. My next attempt will be to try to format a 7200 RPM 200 gigabyte Maxtor DiamondMax drive with my PS2 for use with games.
My PlayStation2 HDD guide.
NTSC J SCPH 30000 with HDD and PSBBN 0.32
NTSC U/C SCPH 30001R Astral Blue LE PS2
Final Fantasy XI status:
Server - Ragnarok, Race - Mithra, Jobs - BLM 72 WHM 51 SCH 39 SMN 25, Nationality - Windurst, Name - Bungiefan