C: drive is OS and Programs. Yes, the WD VelociRaptor is 10K but lower capacity (I think the current version tops out at 600GB) and much more expensive (currently going for about $280). I'd think with little or no expenditure above what a Raptor would cost, you'd be better off to set up a RAID with 3 or 4 inexpensive 7200 RPM drives.

You can use eSATA if you want but if this is the only box you'll be editing on in the near future, I'd recommend just using an internal RAID for editing or storing your files. Both USB or 1394 (Firewire) would not be recommended for editing.

If you're not familiar with the various RAID implementations, there are a number of discussions on DVinfo that you can search for. There are a lot of ways to skin the cat. What I do is have a 4x500GB RAID0 for copies of source files and preview files. I have a minimum of two separate archival copies of all source files that are not on the editing box at all, with at least one copy being off-site. So in case of a drive failure in the RAID0 array (and therefore everything on the array being irretrievable), all I've really lost are preview files which my editing software can regenerate.

Some folks use their editing box source files as an archive as well; in that case RAID0 would be a really bad idea; a redundant type of array will protect you from a single drive failure and RAID0 won't. Regardless, everyone should have an independent backup (preferably 2 or more) of everything they wouldn't want to lose.

Thanks Pete. I guess I got a litle ahead of myself today. After asking these questions I went out into the world found my answers. My new computer arrived today and it has one 3.5 slot and one 5 inch slot open so I proptly filled them. I added a 300GB 16MB cache WD 10000 rpm internal (SATA) hard drive and a Pioneer 206 BluRay burner.
I realize the 300G is smallish but I'm just a working class guy with an entry level HD camcorder. If I have to, I'll store files on BluRay disc.
Do I understand you correctly? I need to install my video editing software on the C drive and store nothing but my video on the 10,000 rpm drive? Is that how it works?
I sure appreciate you input. I've done still for years but video is brand new to me.

ill put it simply and safely; you have two drives. if its something you do NOT want to lose, keep a copy on BOTH drives or burn them to a DVD/Blu Ray/external HDD. keep your OS and editing software on one disk (C drive) as well as your original 'to be edited' files, and put the 'scratch/output/project' files on the second disk.

and back it all up often!

Very good. I actually have 3 drives. I have a 600GB Western Digital My Book to back up the system every night.
OK. Time to shut down this old computer and install the new.