I have Home Movies from iMovie to back-up. What format for external drive?

Hello,
I have Home Movies imported into iMovie 11 on my iMac 3.06 Ghz Intel Core 2 Duo.
I am saving the cpmleted movie projects onto an external hard disc. A Seagate 1TB.
I have had problems with file sizes as I keep getting the message that a movie project is too large for the medium. It seems that I can't store anything in HD.
I've looked at the disc and it's formatted as MS-DOS (FAT32)
Am I right that this imposes a maximum file size that I can save?
If so I have looked at the Disc Utility on my iMac and I can see that I can reformat the external drive.
I have a choice of -
Mac OS Extended (journaled)
Mac OS Extended (Case-sensitive, journaled)
MS-DOS(FAT)       is this the same as MS-DOS (FAT32) it already is formatted as?
ExFAT
Windows NT Filesystem (Tuxera NTFS)   
I'm guessing I should choose the MAC OS Extended (jounaled) or the Mac OS Extended (Case- sensitive, journaled)?
The Seagate Hard Drive is model SRDOSPO
I don't understand the differences between the above formats and would like help on chosing the right one for my Home Movies.
I also have an Apple TV3 which I use to watch the movies on my tv.
Are the home movies stored both in the iTunes file on my iMac, so I can see them via AppleTV, and the external hard drive.
If so can I just use the external hard drive without having these large files filling my iMac disc?
Hope that all makes sense.

The difference between case sensitive and non-case sensitive is self-explanatory. Non-case sensitive iis easier to work with as it can avoid confusion with files names.
The others are weird and wonderful/partly useless Microsoft formats only of interest to Windows users, or those who want to have both Apple OS and Windows on the same computer. Not all of them can be read by a Mac at all, some of them have inconvenient file size limitations.
More info here:
http://formatharddrive.net/types-of-hard-drive-formats.html
Message was edited by: Klaus1

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