Adding Memory USB or SDCard

I have seen and discussed several times adding Memory to my U1, My plan is to download files of various types and be able to take them off the Mini and put them on my desktop or other computers. Now I'd like to try it.. so, first question. Do I use a SD card or can I use a USB memory stick or drive for this... the USB would be easier to put on and take off I am assuming..

2. Does the SDcard and or the USB Memory stick or HD have to be formatted to exFat 32 do you format the card in the U1 and when removing the memory do you have to eject it like you do in a computer. Is there any stickies that shows the procedures to do this?

Thanks so much for your help in advance.
Dave
 
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