If you want to use a USB drive instead of the HDD then edit /STORAGE/HDD/transmission/usr/script/transmission and /STORAGE/HDD/transmission/config/settings.json by changing all instance of /STORAGE/HDD/ to /STORAGE/USBx/ where USBx is USB1 or 2 as appropriate.
The files from the Torrent Client are stored in /STORAGE/HDD/transmission/download.
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