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I have no issues with it.
Good enough for playback, not for editing.
Thanks for the replies!
Harm: Can you clarify?
For both DV/HDV editing, i usually only need one stream of playback. For DV: I occasionally need multiple streams, but really don't mind rendering. For HDV: I almost exclusively use single stream.
As a rule of thgumb... USB is the least professional and reliable of all connections.
I have no problems editing DV with a USB external. (HDV uses the same bandwidth, so disk performance will be about the same.)
Having said that, eSATA will be the preferred connection if you find it at a similar price point. But if it's quite a bit more expensive, you should be fine with USB.
Awesome, thanks everybody for their input!