147GB won't be readable under System 7.x anyhow.  And if I chopped it into bunch of little partitions, even if I had a big 2 page display it still won't be enough to show all icons. 

SD option looks good since I can still get 2GB SD card for a few dollars. (my Mother once picked up about 50 of 4GB class 6 SD cards for only 2.00 each a couple years back, all tested passed with h2testw)