Problem with Compressor

I am trying to submit a film for compressor.

Ive had two problems. Firstly although I selected my external hard drive as the source, it seems to be writing information to my internal hard drive.

So i abandoned that, i dont have anough internal memory to sore the any tens of gigs this projec takes.

Having abandoned the first try I now see Compressor saying "Unable to Submit to Queue - Please restart your computeer or verufiy your Compression Installaions Is Correct"

Any help would be much appreciated.