Well, there is a potential issue with that as well. You want to avoid streaming audio/video to the system drive whenever possible as due to OS, Applications, and caching that drive is doing a lot of stuff that could supersede the video stream.
You can use internal drives, but since we are talking in a Macbook forum you can't have a non-system internal drive unless your booting externally, which would be a bit odd. As such your best bet would be an external drive for that, as long as there is enough bandwidth, so raw HD streams would definitely be out, but MPEG2/4 streams would be fine, as well as HDV IIR.