Setting Locations for IMovie 08 Files

This seems rather basic. But, where do all these movies files get stored? If we are have a record of all movies, the movies will not normally fit on a single hard drive. i do not see anything in the preferences that allows me to set the movie location. Also, most movies will need to be stored on DVDs for the long term. Am I missing something?

View > By Volume
on the menu will show where all your movies are stored. I think you can then drag and drop movies from one volume to another (I haven't tried it yet).
If you use finder to move a movie, it seems to have to redo the thumbnails (which takes hours for hours of footage).

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