In attempting to install recommended software updates I get a message saying my startup disc is full.  I have an Intel-based desktop with 1GB memory.  What can I safely remove?

In attempting to install recommended software updates I get a message that my startup disc is full.  I have an iMac (intel-based) with 1GB memory.  I suspect my iTunes library is using up much of the space (I have no movies installed and have already copied most of my photos to a DVD to free up space).  If I follow the instructions to move my iTunes library to an external HD (can I use a flash drive?) will I have enough working memory to plug it back in for use when I want to access the library?

Welcome to Apple Discussions!
Moving libraries off the boot disk while doable is not very viable.  It creates many new problems in backing up your data, as now you have more than one source to backup.    See my backup FAQ*:
http://www.macmaps.com/backup.html
My suggestion is to get at least two copies of all your essential data in one manner or another, and get a larger boot hard drive to replace what you currently use to be able to consolidate your libraries.  
As for cleaning space, see my FAQ*:
http://www.macmaps.com/diskfull.html

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