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Great questions. Yes, you can upgrade the hard drive and use external speakers. For movies, it will be okay also. It has a very basic processor so you will not be able to multitask on it. It is mostly good for web surfing, productivity work, the occasional media streaming, etc. Here is a link to the service manual for this PC which shows you how to change the hard drive: http://h10032.www1.hp.com/ctg/Manual/c04858273 I hope this helps.
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