Best way to limit HD space using iMovie

I have limits on how much I can store on my built-in HD, so I am trying to find the route that uses the least space on my HD without comprimising quality. I have my events on my external drive, but when I make a project it stores the data on my internal HD. What is the best way to finialize the project so that I can still use it in iDVD but not take up extra space on my internal HD?
Using iMovie 11

Everything is in the SHARE menu and it all works about the same.
SHARE/MEDIA BROWSER places a copy in the rcproject package, and is available to the other iLife apps.
SHARE/iTUNES also places a copy in the Media Browser, and also in iTunes.
SHARE/EXPORT MOVIE sends a copy to the FInder in a location you specify.
If you use SHARE/EXPORT MOVIE, the movie will not be in the Media Browser, but you can still use it in iDVD. You can just drag it into your iDVD project from the Finder.
There is also an option, SHARE/to iDVD. I do not recommend this option. It will render your movie in DV instead of in h.264, and most people report that the quality is degraded. Also, when you use SHARE/iDVD, the file in DV is very large, so no permanent file is kept (except for your DVD). The temporary file is erased once your DVD project is encoded. In all the other options, you have an h.264 file that you can continue to use.

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