A:Answer You may let all your originals reside on this drive. They do not need to reside on your computer. However, you must have the drive accessible (plugged in) when ever you want to update your library or device(s). Even if you need to update to a larger drive sometime iin the future, you may copy or move the contents to a new drive. When itunes does not find the files, you follow the offered click to find a file, choose the new drive, then itunes will be able to find ALL your files again automatically. You only have to do this once.
Having all your videos and photos on a separate drive, keeps your computer free for other things and you can easily upgrade to a new computer. I keep all my files on an external drive and back them up on a second external drive. I only keep programs, e-mail and apps on my computer(s). This way, nothing is ever lost unintentionally.