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External DVD burners will work with iDVD if you apply a patch, you can download this all over the internet and you just put the 2 files in your home directory.
I recently bough a Pioneer 16x Dual Layer DVD burner for my generic USB 2 / Firewire case. Apple haven't used this one in any of their machines yet but I used patchburn 2 and it now works with iTunes iDVD etc, worked with toast from day 1. These drives are down to 160 or less now and I see no reason to buy any other DVD burner unless you want something cheaper. I don't think DVD burners are going to get much faster for a while.
EDIT - Although I've burnt discs from iTunes and iPhoto I haven't burnt anything from iDVD yet, it does however give me the option. The patch also allows you to save projects as a disc image so you can burn in Toast or another program, this would allow you to transfer them to another machine if you don't have a DVD burner at all.
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2.5 GHz 15" MacBook Pro, G4 Cube, Colour Classic, 840AV, ][GS, iPhone
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