Moving imovie files out of home folder - thoughts?

At the school I work, we use an Active Directory network and a program called Centrify to link all our Macs in. All the students' home folders are stored on a server, rather than on the individual computers, allowing them to access all their data while logged in at Windows or Mac computers.
Now, owing to the amount of data that imovie creates, we are looking for a way of stopping this from being saved on our server, and saving it to the shared folder of the computers instead. Anyone have any thoughts on how we might be able to do this??
The other options, are making local users for each computer that the students can log into & use, purchase external HDs for each computer, spend money on a bigger server, or look to other software, which would enable us to choose where files are saved. Have I missed anything?

In theory, all users float from machine to machine. In reality, they tend to use the same machine each time they are in that classroom. iMovie is not the only program that makes huge files, just the only one we cannot get to store data directly to the comp's hard drive with this system, hence my seeking advice. They also use Adobe Creative Suite, which they store finished projects on the server, but use the HD of the computer as the scratch disk.
Getting imovie to store on the server is easy with Centrify. Centrify makes the OS think the user folder is stored on the computer, even tho, it is actually stored on a server elsewhere.
And yes, it seems we are looking at additional storage for the users on the server, probably because it is the easiest solution. Not cheap mind you (being in Australia, nothing with comps is cheap!) considering we are talking about a school with 900 students who all have data storage needs, but doable.
Also, we did look at getting each student to bring their own external HD in the past, but then if the student forgets it (which can happen quite often if you rely on students!) their class time is wasted...
Anyone else have any other solutions I can take to my boss?

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