The HDD speed of course matters as normally you read the data from the HDD.
The 4200 RPM hard drive might limit you if the drive is fragmented or you try to burn at 16X. It should be able to feed the burner with data at 8X, it works for me.
I used both external and internal burners (USB 2.0) the USB2.0 is fast enough for burning so I did not experience noticeable difference between the internal and external drives in burning time.
On the other hand the USB external drive had problems with some burning softwares.
Randomly I got errors unless I used the Nero dirver which as far as I know more tolerant so works flawlessly.
I think I usually burned a disc in 9-10 minutes with 8X speed but I will confirm this tomorrow.
Hope it helps.