Question : Problem: What is the most efficient way to utilize an External Hard drive connected to one Server to be shared among 4 PC's

This one may make you laugh fellows so here goes. I bought this external drive Western Digital WDH1CS10000N 1TB MyBook Home Edition and thought this might be the simple answer to download Databases that I am sent to work off of in my business. My concerns are:
1. If I put DB's on this External Drive is the USB 2.0 just as efficient to running the application on the Server and pull the data through the USB from the External to the application for processing with Products like Crystal Reports. In other words Is it stupid for me to leave the data there and work straight off the DB or should I use the External simply as storage and pull a copy over to the Server and run reports or applications pointing into the External to get the data. I just do not understand how that all works what is efficient or not and what does matter and what really does not matter.
2. Is there some kind of special trick to sharing an external drive among the other Machines. For some reason I cannot see the External even though it is shared on the server. The other PC's do not seem to see it. Please advise pretty desperate to get my data in order.
Thank you

Answer : Problem: What is the most efficient way to utilize an External Hard drive connected to one Server to be shared among 4 PC's

the picture of the shareing properties, is of a "hidden share". The "$" after the drive leter causes it to be hidden. you may be able to remove it, so the other computers can see it. or you can just create another shared folder and use that as the share. as far as running the DB off the External.. i don't think it would be much of a problem as long as it's connected to a USB 2.0 port. (if you are running a 100megabit lan) the USB is faster so it should be able to keep up just fine.