If your external drive has the original floppy mechanism inside, it will not read or write HD (high density) 1.4MB floppies. The M0131 is an 800k external drive. This means you'll need some DD (double density) floppies. If they're IBM/DOS preformatted, they'll often say 720KB on the box. They'll also be missing the HD index hole, only having the write protect slider/index.
If your external drive has had the mechanism replaced with a 1.4MB unit, then it should read and write both DD and HD disks. Make sure your disks have been initialised in a Mac using the Mac OS Standard format. If disks are in MS-DOS format, your files' resource forks (crucial to applications and games) cannot be stored on disk, and the PC File Exchange extension is required to access the disk at all.