HERE'S WHAT WORKS FOR ME!!
I owe a lot of thanks to everyone who has posted in this and other boards as it has helped me to figure out how I should approach the matter. I'm going to make this as simple as possible. Forgive me if my explanation isn't elaborate or simple enough.
1st: I followed the steps to transfer my entire library, etc. to my external hard drive as outlined here:
http://support.apple.com/kb/HT1449
2nd: I deleted only the "Movies" folder from my "iTunes Music" folder on the internal hard drive, thus, freeing up a large amount of storage.
3rd: I made an alias of the newly transferred "Movies" folder on the external hard drive and then moved it to the appropriate spot in the "iTunes Music" folder on my internal hard drive (in place of the old one - make sure you delete the old one).
4th: Change the iTunes Media folder location back to the default/original location on the internal hard drive -

After doing so, close out of iTunes and reopen and check to make sure everything is working properly (i.e. leave the external hard drive plugged in and make sure the movies play and then unplug the external hard drive and see if you get the error message that the file cannot be located, etc.)
By doing this, you free up space on your Mac by placing all the movie files on your external hard drive and can still have iTunes act as usual by accessing both your music AND movie files from your original media folder location on your Mac. Please note that your iTunes will only access the movie files so long as you have the external hard drive plugged in. In addition to this, whenever you add a new movie file to iTunes, you'll have to move it from the internal hard drive media folder location to the external hard drive's and then go back to the internal and delete.
Considering the end results, it really isn't much hassle at all. Just plug and play and be sure to move new files to the external hard drive.
Hope this helps!!! =)