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I am planning on installing Ubuntu on an external hard drive. My question is where does data get saved when I use this OS? For instance, if I create a folder on the desktop of Ubuntu where is that information being saved? Ideally, I want all data related to my Ubuntu OS stored on the external drive… Is this possible?

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Perhaps you're interested in this question: * askubuntu.com/questions/16988/… –  landroni Jan 18 at 11:27

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It will be saved on whatever partition you install it on. As long as you can boot from the hard disk, it will save there.

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