Going beyond iMovie on iMac?

I am a fresh iMac user, and have tried iMovie a bit. I also tried working with a 3 min. testclip in Adobe Premiere Pro CS3 (trial), but gave it up, due to bad performance / result in encoding/rendering.
My goal is to capture 40 minutes DV from my Sony TRV80 MiniDV camera (PAL), and edit it on the iMac, then output to DVD with as high quality as possible.
How will my single HDD iMac perform with the encoding to DVD in iMovie or FC Express ? I suspect that pans and zooms may create artifacts ?
Will the programs perform good enough with an external scratch disk (Firewire 400), or should I leave it all on the internal HDD ?
Grateful for all advice!

Hello iMaur,
Your Mac with specs as you listed will do absolutely fine with iMovie, iDVD and Final Cut Express (FCE). Pans and zooms, effects, filters, etc. should cause it no trouble. Adobe CS3, however, may have been pushing your particular machine too far.
Using your internal HDD will also be fine, however most FCE users prefer to use external Firewire drives for a number of reasons. FW400 is quite adequate for video although you will find that most new FireWire drives now support both FW400 and the faster FW800.
Regardless of which drive you use, you should always keep at least 15-20% free space on your system HDD - the system needs this space to operate well.
If you plan to purchase FCE, get the latest version (v 3.5) as it is the correct version for the Intel Macs and it fixes a number of video capture issues that arose when OSX 10.4.9 was released (which I see is the version you are running).

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