Slow iMovie - Does it has limitation in the amount of video files it can edit?

Dear All,
I would like to do some videoediting of holidays video with my iMac i7 12gb ram.
I have imported with iMovie my dv video and this worked fine. But starting from a certain point iMovie became really slow. Thinking of a memory issue, I added 8gb ram (now 12) but the problem persisted. So I decided to move video files from mac hdd to my gbit lan NAS, and than I got a firewire800 hdd.
I got a MyBook Studio II (http://wdc.com/en/products/products.aspx?id=210) which I tried using first RAID1 and than to increase speed I configured into RAID0.
Now, what I noticed is that if the project has a total of:
- 29gb of video files, editing the project (move, delete, add) and play works quite fine. (project file size about:17mb)
- 53gb of video files, editing is slow (about 7sec to move or delete a clip)  (project file size about:128mb)
This happens both if the video and pj files are on the iMac hdd or in the firewire one.
Does anyone of you know if iMovie has some limitations in the amount of video files it can edit, or if it is not performing correctly under certains conditions?
Furthermore I will start editing 1080/50p video since I got a new camera. Keep going with iMovie is the right way? Do you suggest other products?
Thank you for your advices,
blp

It appears you have enough processor speed, memory, and hard drives.
Once these are taken care of, there are two main things that cause slowness 
1) Events should be logical events. You should not dump all your footage into a single event. A project can use clips from multiple events and the performance is fine.  In DV for example, an event should hold maybe two tapes maximum. If a single tape has three logical events: say Birthiday, Vacation, and Christmas, make three events.
2)  if you editing feature length movies, you should use Final Cut Pro X. For short movies iMovie is fine. For movies in the middle, it is more of a judgment call. The reason is that iMovie renders everything in one pass. Final cut Pro does background rendering as you go.  If this were the case for you, you would be able to edit at full speed, and you would only notice the slowness or a crash when you shared the movie.

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