You could, but not on the same computer.  I've worked with Serato on one  and MOTION DIVE on another, and once you start talking about using three gigs of RAM just to fade one video clip on MD to another... you're going to hit a resource crunch on the most basic things.

There are, however, some interesting products coming down the pipeline, but I will be killed if I talk about them. 

Actually I've running Arkaos NuVJ demo and BH on my Dell with reasonable success to monitor and projector.   I've demo'd Resolume, fooled around with Grid2 on my clunker mac.  I tried to demo MD but the website is too funky for me(Japanese).   I'm not looking to go 'off' mixing vid too much work during the Live set, but if you can control content with a degree of automation, man you got a groovy vid show.  Little bit o' fog and it's gotta look good.  My day job is video and I TD a broadcast consule, so my life revolves around switching inputs, multiple keys, etc.  I know it takes TLC to vj but automation makes life much easier.  I am amazed how many keys and calculations programs like MD, GridPro(I forget their new version), Resolume, etc, can simultaneously run and I can see how that would hit the processors very hard + stream the audio with efx, routing...  still I'm amazed at what a fast hard drive and a good graphics card can produce.   Plus it's a no brainer that Live is probably going to provide live video real time output/save mode in a rev or two.  Plus through a decent scaler you could still switch between DVDs, tape, camera feed and route the laptop for eye candy. 

Hey djdunamis,

<<make sure they're 7200rpm drives and if external, make sure they're firewire. (1492b preferably>>

Hey think esata externals(7200rpm), they're way faster than the 800fw, no comparisons, well maybe not to the 10,000 rpm SCSIs if you can afford em.

peace

1 to 3 GB throughput as I remember.  Now it's only about how fast the hard drive is.  Most we video editors are setting up esata raids for HD editing for the throughput speed.   So why not stream the video in a vj program I thought.  Have tried and it's working like I say I get some hiccups occasionally.  I've been running for like 12 hours straight... but I haven't been mixing Live with full efx, midi and samples for 12 hours straight.  Still it looks doable.   I have mixed music with for like 1.5 hours, efx, loops.  This is not to say that I stream video avi's for 12 hours, but they're in the mix heavy and all the processing is going on, overlays, keys, draw efx, graphics card intensive stuff.  If it's worse than normal(hiccups) a reboot seems to clear it up.   Very cool.  Plus I'm a video guy, I can come up with content like nothing(actually years of collecting and creating).

The biggest issue is making sure your esata drivers are friendly to the rest of your sys.   I've heard of some funky issues.  Seems like a bit of a crap shoot.  Me no prob' yet, and the card(express not PCIMIA) was cheap($45).   Esata/USB2  combo Seagates 320g, one for video, one for music.