Having a memory issue when trying to process a movie

I am trying to process a movie using iMovie 6 (I've posted on the iMovie forum as well, but with no response so far) which has always worked fine in the past, but now I seem to be having a memory issue. The movie is 977.9 MB.  At the bottom of the iMovie is says that I have 24.4 GB available.  When I checked the information on the Secondary 120 GB Hardrive which is where the movie is saved, it also said 24.4 GB available.  However, when I process the movie, I immediately get the message "Disk Space is Running Low.  Burning this movie will require approximately 1.74 GB of disk space, which is less than you have right now."  I deleted more items and freed up more space - 32 GB (according to the movie), but it still wouldn't run.  Could it have something to do with iMovie trying to use the startup disk instead of the secondary hardrive which has more memory? Can you help me with allocating more memory so I can process this movie by Thanksgiving?  Thanks!
Processor: 1 GHz Power PC G4
                  2 MB L3 cache
Memory:  2 GB SD RAM
Startup Disk:  Macintosh HD
Secondary 120 GB Hardrive
<Re-Titled By Host>

Hi,
Please implement the solution from SAP Note # 1309363.
Regards,
Yaniv.

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