Ran Out of Storage While Editing

I am about 2/3 through editing a large file that is about an hour long in the timeline. I know this is a large file, but so far, Final Cut Pro X has been able to handle it without acting too sluggish. However, I'm about 2/3 through with the project now and I ran out of room on my 1TB external drive where all of the media was stored. At import, I selected "create optimized media" for all of the clips.
I am wondering, at this point, how can I reduce the amount of storage this project is taking up so I can continue working on it off of my external drive? Right now, the Final Cut Pro library file in the drive is at 870GB, and FCP will not continue unless I free up storage. When research this issue, I saw that creating proxy media can help but was unsure about doing this so far into the project, and not completely sure, if at this point, it would actually free up space since I didn't do this at import...
Any tips or input would be appreciated. Thanks.

Thanks Russ. I have ordered up a larger drive and suspected that was part of the issue. But since this is my first large project of this size, I thought there may also be a way to be more efficient with the amount of space the project takes up. 870GB seems very large, even for an hour long HD video. So my focus, in addition to getting more storage available, is also on how to be as efficient as possible with the file size, which is why I am trying to see if there are ways I may not have realized (since I'm very new to this) of decreasing the file size while still maintaing the quality of the final output.
It seems as though using proxy files may be an answer but just now want to make sure the conversion to that doesn't have a negative effect on my current work in progress. Any input is appreciated.
Niall

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Ran Out of Storage While Editing

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