What is the recommended set up for Final Cut Pro re: Scratch Disks etc

What is the recommended set up for Final Cut Pro with regards to Scratch Disk etc.
I have a lot of projects and at the moment they are all over the place on various external HDDs etc.
I just bought a new Firewire 800 External HDD and want to get everything straight but I'm not quite sure where to start...
Any advice would be appreciated.
Thank You

Media Manager (available from the File menu bar item) will consolidate all elements of your project together with a linked copy of the project file to a single folder in a location of your choice. There are various options to leave out unused footage, include handles etc. Safest way is to copy the files. Delete the originals when you are sure the copy works.
The user manual has a detailed description of how MM works.

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