Editing video located on an external HD in iMovie?

Yes, that's the recommended way as it prevents excess wear and tear and your internal drive due to the constant read/write activity during the editing process.

When you import into iMovie(don't know about Final Cut etc, but they should have a similar option), choose to save the Event to your external drive.

MacsomJRR said:

Is it possible to edit HD movie files located on an external HD without importing them onto my computer? I'm using a MBA with limited HD space. My external is quite a bit larger and is connected via a thunderbolt cable. Any help or suggestions would be very much appreciated.

Thanks!

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It will work fine on the external drive. But if the internal drive os FLASH then it will work faster on the internal drive. Then later after you are done move everything off to make more room

In the days before FLASH drives everyone had to put the video on an external because it was faster,