More "out of memory" problems FCE2

Hi,
Last week I was experiencing "dropped frame" error messages on FCE2. As suggested by Ian R., I printed my project onto video and my "dropped frame" problem immediately went away. But then it came back. Now, along with the "dropped frame" messages, I'm also getting "general error" and "out of memory".
Any new suggestions? Do I need to go out and purchase more memory?
My project is fast-moving piece, LOADED with special effects, audio effects, dissolves, text, etc.
I have an iMac G5 with 512 MB DDR SDRAM
Any ideas?
Thank you

Ok, please bear with me, I'm not exactly the biggest computer whiz...I'm more of an old school television person who's learning the computer ropes.
Are you suggesting I get something extra to use on my LaCie Ext. HD? or just get something totally different? The wire on my LaCie plugs into a port on my iMacG5 that is rounded on one end, not flat.
If you go to this web page is has details about my LaCie Ext. HD:
http://www.zipzoomfly.com/jsp/ProductDetail.jsp?ProductCode=102650&ps=ho9&affili ate=dealnews
It has FireWire: 2x FireWire connectors (6 pins) and it says it offers fast data transfer rates (up to 400Mbits/s) for transferring home videos from a camcorder.
On another note: I've been able to get the other channel of audio by capturing it on my internal hard drive, copying it onto my external hard drive and then importing it into FCE2. It's a pain-staking process that is taking up lots of time and room on my internal HD. That's why I got the ext. HD.

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