Again, mine work just fine and I see no difference in running from the Internal or the external as the speeds are both 5200 I believe...
Most laptop drives run at 5400 RPM. Most desktop drives are running at 7200 RPM.
With FW and USB, that's not the whole story. USB spec's out as faster (480mb/sec) than FW 400 (400mb/sec), but in real world tests I've found the overhead in the USB buss really hurts it's performance. FW drives and USB drives writing the same folders of files to a 7200 RPM internal drive show a 25% increase in speed over USB drives. That's why FW is the best interface for video camera's to be able to stream data to a Mac.
External FW800 cases with 7200 RPM drives actually perform as well or better than the 5400 RPM internal drive on my MBP. I booted from an OWC MiniStack V3 external FW800 500GB drive for years in my office. I used SuperDuper to clone the basic OS, emails, some documents, to the internal drive once a week so that I had the basics with me if I left the office.
As far as WD drives... There's no rhyme or reason as to which drives will work properly with FW. Western Digital came out with many firmware updates to their MyBook drives when Leopard came out. I viewed this as poor or minimal engineering to cut costs but the problems may actually be traced to design of features not necessary or wanted on a Mac. Many other brands of drives continued to work fine, as expected, with 10.5. Now I see new problems with WD drives and 10.6. It's really not a surprise that there are lingering firmware issues on these bargain products. In addition, I've seen other sites report that there are problems with WD's drivers for SL and that there are problems with a 'built-in' spin-down function on the drives themselves which can affect the drives' availability for Time Machine and even a booted OS.
http://www.macosxhints.com/article.php?story=20090316190817357
So it would seem that some of the problems are being caused by a 'feature' and not a 'bug'. Since these 'features' require special drivers from the manufacturer I'll keep away from them. Apple's drivers are what I have to trust during upgrades and updates. Manufacturers can not be relied upon to provide timely updates, and users can not be depended upon to keep track of every proprietary driver on their systems. Any drive that comes with a setup disk or feature enhancements on in the protocol is suspect when upgrading to a new OS.
Luckily, I trusted my instincts and years ago went with OWC drives (MiniStack and Mercury) for all of my external drives, other than the ones where I bought simple external cases and installed the drives myself (they are also working perfectly with 10.5 and 10.6).
There are even reports that say Western Digital techs are not recommending booting from any external drive (they must mean theirs), yet we've been able to do this reliably with Mac OS, way before OS X, Firewire, or even USB.
At this time I still get occasional bare WD drives to repair systems with failed internal hard drives. They don't seem to have any of these issues, and are good generic hard drives. It looks like it's the features in the interface firmwares of their external cases that is the problem. If you remove the drive from a MyBook case and put it into a generic $30 case (and format the drive) you will probably have a good reliable drive for a Mac.