Final Cut Server on Local EXT. Drive

Ok, So i'm looking for some help here and hopefully you awesome guys will be able to help me. Now I totally could be in left field here but i figured I would ask.
Ok so I have an EXT Drive on a MacPro that has about 80 GB of footage on there. I want to make this drive my main location for Final Cut Server and have my editors work from that device. I want to be able to import the proxies in Final Cut Server.
My question, is there a way to do it and if so How would i hook up this device to Final Cut Server to read.
Like i said, I'm new to Final Cut Server so I could be talking non-sense here.

You need to create a Device with a Scan to make the media (and their proxies) accessible to editors. This is covered very well in the introductory chapters of the new Final Cut Server book as well as in the included and online documentation.
Note that you probably won't be able to have your editors "work from that device" if you mean interactively edit, since editing over Ethernet is not practical, and the connection to a FireWire or USB external drive is much slower than an internal drive, and not to mention that with multiple editors doing multiple streams you'll have lots of dropped frames.
The editors will have to cache all media locally, so if they have to do so often, you will have better performance if you move the footage to an internal drive.

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    Thanks.

    I'm dealing with this issue right now (FCSv 1.5.1 latest pro app updates, 10.6.2, FCP7). I was under the impression that you could make edit proxies that were 25% resolution (as opposed to just using an efficient codec), but Final Cut Pro is having a rough time getting it right. I too am only getting success with ProRes-Proxy, audio passthrough, and 100% res/everything else. I tried using Apple Intermediate Codec with default "100%" settings and audio passthrough but had no luck. It's way heavier than ProRes Proxy anyways.
    The only suggestion I can make is try your h264 solution with audio passthrough (or Linear PCM) instead of AAC. If that makes a difference we're on to something. Some people started having this issue after an iTunes update, so maybe AAC is the source of the problem.
    The edit proxy workflow really needs tweaking from Apple to cater to internet-based solutions rather than fiber/SAN environments where bandwidth is a non-issue.
    I'll report back later after some more testing.

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