USB external drive vs. Firewire

Do I understand correctly that I cannot store my movies and edit them in iMovie when they reside on an external drive via USB connection? Is it possible that I can use the USB hard drive as long as I format the drive for Mac (not FAT format)? Or must I use a firewire hard drive? Anyone? Thanks in advance for anyone who knows the 411. -Jeff

I am sorry, it has been a while since I looked into this. I believe it goes something like this...
I hope someone will correct me if I am wrong. Also, if you have a Fat32 drive, plug it in and try it. If it doesn't work it is easy to reformat using disk utility.
NTFS - Good for Windows, but Read Only for Mac, Bootable for Windows
Fat 32 - Works for Both (read/write), not bootable for Mac, 4GB-1 maximum file size, Bootable for Windows
HFS+ - Works for Mac, bootable for Mac, no Windows
The issues with Fat 32 for video applications: 4GB file size limit frequently will not be enough, disk fragmentation can be a big issue for large file sizes.
I haven't been able to find anything saying it absolutely wont work, and I dont have time to test it tonight.
Also, drives have come way down in price. You can get a new firewire drive and format to hfs+ for video applications and keep your current USB drive for sharing.
One more piece of data, I have a firewire drive (HFS+) for my nightly backups with SuperDuper. I bought my daughter an inexpensive USB drive (HFS+) for backups using SuperDuper. The Firewire drive is much faster for the nightly backup, and it is much faster when I boot from it than booting from the USB drive (SuperDuper creates bootable backups).
One last thing, I bought a USB 4GB flashdrive for about $30. It easily handles most of my needs for transferring files to a PC or other Macs.
Sorry to ramble, but that is my brain dump on this subject. Hopefully others will point out my glaring mistakes and omissions.

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