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Dimension 4400...external hard drive to run my Photoshop program?

I have a Dimension 4400 which has no more space to function well (have a lot of errors). Was wondering if I could use an external hard drive to run my Photoshop program? I have already removed many documents including photos in an atempt to gain speed. I even removed Photoshop and some other programs. Any advice for this, to poor to buy a new PC, soul?

Thanks

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