IMovie project location, can it be on external drive?

I have an external Firewire 800 drive that I use for media storage. When I do projects in iMovie can I do them on the external drive or must they reside in the internal system drive? Moving them after completion and taking them to trash etc is time consuming if there is an easier way.

Yes, you can start an iMovie project on the external drive.
Click VIEW/Group Events By Disk so that you see all your external drives. They must be formatted as Mac OS Extended (journaled).
Now, in the Project Library, you should see all your external disks listed. Select one of the external disks so that it is highlighted. THen, click FILE/NEW PROJECT (or click the plus sign), and the new project will be on that disk.
If you want the new project in a particular folder, select the folder, and then click FILE/NEW PROJECT.
Note: You should create the project folders in iMovie.

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