I think the catalog is always on your internal HD, but I've had all my photos on external drives for years, not a single one on the main drive. My old laptop didn't have enough storage and I want a backup copy anyways. Works with no issues. I pretty much just buy what's on sale at CostCo, currently I have two 1TB Iomega drives with firewire and two 3TB Seagate USB3 drives on my mac mini. Both on hubs. I think LR or PS loads what ever image you work on into memory, once it's there it's there and can be worked on. I notice no speed problems at all, though I can't compare it to having images on an internal drive. My mac mini is about the same age, two 27 inch screens on it at 20something by something resolution, higher than HD. Had to get a little dongle for the 2nd screen, turns one of the USB ports into a display port (I think, not too firm on all the acronyms and names of things, sorry)
So catalog is on the main drive with the application, all images on external drives, with no issues. The new ones (3TB) are usb 3 since it's just as speedy and my other hub is full.