Yes, i’ve already split the project into 2 sequences. So far things are going well with this project. Unfortunately, the client was completely clueless as to the difference between DVD and CD Rom. They insisted they wanted a DVD, but in the end they realized their confusion, and started to refer to the project as a CD Rom. At this point, the nearly 5 hour running length made that impossible, and I convinced them to stick with DVD.
I plan on burning the final project to dual layer DVD, provided I can fit it all on there.
As for my system, I have a dual 2 gig G5 OS 10.3.9, with 1.5 gig of Ram. FCP 4 HD, DVD Studio Pro 3. I also have a G-Raid for storage (which I highly recommend)