Archiving iMovie 7.1 on external drives

I am digitizing old family movies via iMovie (7.1) that is housed on my MacBook Pro laptop (10.4.11). To save hard drive space I would like to archive these and others movies on a 500 GB external drive, and THEN erase them from my laptop drive. I want to make sure I am doing things right before I get too far into the project.
Can I just move the iMovie Projects to the external drive, or do I also need to move the iMovie Projects AND Events over. Do I need to install the iMovie software package in the external drive as well?
If there is an easier ot more efficient way of doing this kind of work, I'd welcome all suggestions
Thanks,
EW

The external drive MUST be formatted as Mac OS Extended (Journaled) and MUST be connected by firewire.
Keep the application on your startup drive, but the projects can reside on the external drive, subject to the above.
Make doubly sure everything works before deleting the originals!

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