As you noted, they must be in the iMovie Events folder at the top level of the external drive. Projects must be in the iMovie Projects folder at the top level of the external drive.
Also, the external drive must be formatted as Mac OS Extended (journaled). FAT32 drives will not work, but can be reformatted. For instructions, see here.
Just so I fully understand, what do you mean by the folder needs to be at the top level?
I checked the box of the hard drive, it 's PC & Mac compatible. Specs indicate Mac OS X (tiger, leapard, snow leapard, and lion) with included NTFS driver for Mac. Is this not the same as mentioned above? It's the hard drive Best Buy used when backing up my info when computer crashed.
Thanks again, much appreciated.
OK on your internal drive Events will be in the Macintosh HD/<your user name>/Movies/iMovie Events folder.
On an external drive, they must be in the iMovie Events folder. They cannot be inside any other folder.
Each event will be in a separate folder within the iMovie Events folder.
From your description, your drive will not work with iMovie. It will work fine for most things with a Mac, but it will not work with video applications like iMovie or Final Cut Pro.
You can reformat it so that it works with iMovie, but be aware that in the process of formatting it, you will lose anything that is currently stored on the drive. The instructions for reformatting are in the link in my previous post.