In line all the way. if you have in-line heaters, the water is heated as it passes through the pipework, rather than trying to heat the whole tank by putting the heat inside the aquarium. I am heating a 300 gallon aquarium to nearly 29° with 600 W of heating. I think the only drawback may be rather like using a small heater in a large room, it has to work that little bit more to heat such a large space.if I was you, I would go for the 500 W. You can then set it at 27°C -- 28°C, which ever you want and you will find that it will only come on if the water drops below that temperature.