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I'm new at this and have not done anything complicated or longer than 30 minutes when produced, but I have been using a WD 1TB Passport for all my video work and have not noticed any problems.
Not to say this is the best way, but it can work and not cause problems, at least if you don't ask too much of it.
I think there is a setting in the WD software that allows you to tell the USB drive to never go to sleep.
I've been working with an i5 Ultrabook with only 4 meg of RAM and a 128 gig SSD. I've upgraded now to an i7 with 8MB RAM and USB 3.0 and it is a lot faster. Still only a 128GB SSD, however, so I'm still using the external drive.
Apologies if I've misspoke on any of this!--Paul Manuel
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