You created your own movie in iMovie but you can't figure it out how to save the darn thing into a playable .mp4 file on your hard drive. I've been there, let me show you how to do that.
You deleted everything from your USB key or a drive, so there should be enough free space to copy the new files, but you still get the not enough free space message in Mac OS X? This is what you need to do.
As the Hobbit movie just hit the theaters worldwide it's a perfect time for a short retrospective of all the beautiful locations of New Zealand where the Lord of the Rings trilogy was shot.