Are you on a PC, or a Mac? The formatting options will differ, though the results will be very similar.
On the PC, you will want to have your HDD formatted to NTSF, and not to FAT-32, which is how many/most ship. There is a similar formatting for the Mac, but I cannot recall the exact name.
Do not partition the new HDD.
For some general tips on HDD's and their allocation for video editing, this ARTICLE might be useful.
How do I format it to NTSF?
I just checked the properties of my portable hard drive and it says that it is NTSF!!! =)
Now to just understand how to utilize it to allow for PRE 9 to run faster
For an external, the connection type can make a big difference. What type of connection does this drive have?
It is a USB 2.0/3.0 but my laptop only has the 2.0. I'm currently searching for an optional eSATA cable accessory
My Passport Essential SE 1TB
Is it possible to get a converter? USB 2.0 to eSATA?
USB will be probably worse than having everything on your internal drive and is only suitable for archiving.
Main thing is to have the video files on a different sata drive to your working and saved project files. Better still have 3 drives with PE9 on the C: drive
There is a PE9 preferences screen where you can put anthing where you like.
You can get 1tb internal sata drives for around $65 or 2 x 500g drives for $40 each (as long as you don't use a laptop)
You just plug them in, using a short sata lead (generally comes with the drive), to the same type of power and motherboard sockets as your old sata drive with the little L shaped keyway the right way around - nothing magical about it but do it with the power plug disconnected!.
Sorry I didnt notice you had a laptop - please disregard above