2.5inch drives are more portable and are powered by the USB wire - 3.5 drives are a lot bulkier and require an additional power supply. Both work on USB of course.
Not sure if you'd be easily able to hook the drive up to use on both computer at the same time - you could get a crossover network cable and create a simple network with the external drive on one PC and share it out. ?
I have a 400gb maxtor 3.5inch external which I lug about to big meetings - bit of an arse but the 2.5 drives are more expensive and of course smaller in capacity.
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