Is the Internal Hard Drive the Best Place for the Project Files?

At the moment I have my Project Files and all the others (media, render etc.) on my external LaCie FW HD. The setup works perfectly OK.
However, would it further improve performance if I put the Project Files in the Documents folder on my eMac's HD?
Theoretically the two drives would be splitting the workload and therefore the computer should be more efficient.
I would appreciate any input detailing the advantages of different configurations and whatever system may be your favourite.
In the near future I will probably be getting a second LaCie HD - basically for general storage. How could that also be advantageously used to make FCE HD even more efficient?
Ian.

Putting the project file on the system drive is generally considered good practice. I'm not sure how much actual performance improvement you'll see, but the media might be less likely to have dropped frames. It also means, if your autosave vault is on the media drive, that you have project file backups on a second hardware device in case one fails.

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