IOmega UltraMax (3-way interface) 500GB hard drive incompatible with iMovie

I recently bought an IOmega UltraMax (3-way interface) 500GB hard drive to use with iMovie (4). I expect I'll need to return it anyway but the IOmega tech support guy was trying to blame my problems on a software issue. He was not helpful beyond saying, "Well, the drive works because you got it to mount (this time)." Has anyone else had problems with this (or any) external drive that were related to iLife programs?
When I have iMovie running (from a project on the internal drive) and plug in the external drive the import window immediately stops working. If I try to set up a new project on the external drive the option to save is greyed out and then I can't quit or force quit iMovie and the drive won't eject (of course) so I have to force-restart.

FW800 and 400. I have to use the 800 cable to connect because the 400 port is in use for the camera.
I did find something on the iomega site about known problems but they said I had to uninstall some piece of iomega software and I couldn't find any sign of it on my internal HD. I never installed anything.

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