I recently purchased all three items. Both the Western Digital external hard drive and the Sony Handycam have USB/Firewire connections. The Handycam works fine using either connection, so does the hard drive.
The Pinnacle software is the 'Studio DV' version 8.4.16.
However when I go to capture video to disk in Studio 8, I receive an error "Drive F: is not capable of capturing DV data". It works great on C: drive though.
I am using a Compaq 1700T laptop with firewire PCMCIA and USB connectivity.
The requirements for the Pinnacle Studio 8 is that the hard drive must be capable of a substained reading and writing at 4MBs. It states that all SCSI and most UDMA drives are capable of this. Seeing as how this is a firewire drive, I would think it would also but I can't find any information to support this.
WD's web site doesn't even list this drive, they list a WD800B002 external drive.