1. Can a single External HD be read by Mac and PC? The October 2004 article in Videomaker seemed to imply it could... just need to verify. (any suggestions as to brands?)
Well, the DRIVE might be usable by either, but it has to be formatted for the operating system, which puts quite a damper on your plans to move quickly between the two systems since I don't think you can have it formatted for Windows and for the Mac at the same time.
2. What file format is best for capture via my PC laptop for future editing? MPEG2 or AVI ? I assume once a project is under edit it is saved in proprietary file type in Videowave, iMovie or Final Cut. I just want the raw video available to either computer type.
I don't know of any editing package that natively uses MPEG2 except for one that only comes with an HD camcorder, but then I'm not familiar with Macs.
3. Since I'll be running off the larger, faster external HD, is 700 MHz and 384 mb of RAM fast enough for simple video editing ? The max RAM on this Dell is only 512 mb.
In short, 'No'. You've mentioned Roxio Easy Creator 7, so you could check its requirements, but I doubt if anyone here would recommend that software. You're probably not going to want to hear this, but I think you'd better review your choice of editing software and be prepared to upgrade your PC to a 2 gigahertz or better CPU, all Intel system with at least 512k of RAM and 2 harddrives (one just for video files) and get a really good video card.