i'm torn between risking my tank 108 gal. to crack during drilling a hole in the bottom to accomodate an internal overflow or using an external overflow kit ,,,are there any risks involved in using the external overflow??
IME drilling isn't all that hard or risky. Actually, the larger the tank the less risk (ie. thicker glass is harder to crack). Just make sure the panel you're going to drill isn't tempered and don't get too close to an edge.
I'm not sure just how close you can get, but I've drilled 2-5/8" holes (for 1-1/2" bulkheads) about 3" from the edge of 3/8" glass with no problems on several occasions.
Try practicing on a cheap $8 ten gallon tank first. If you can drill through that without cracking it, you can drill through anything.
Let the weight of the drill do the work, no downward pressure by you. I like to use the dowel drilling guide you can find at home depot to make sure I am keeping the bit level.
Like someone else mentioned, the thicker it is the easier it is to do without breaking it.