Can't Get Compressor Destinations To Work

I'm trying to use Compressor to shrink a 90-minute lecture I filmed and at the present time, I have more free space on my external RAID array than on my internal hard drive.

I created a Compressor destination and pointed it to the external drive. In my Compressor job template, I used the Inspector for each target (audio, video) and set that destination as where I want my output to go.

However, no matter what I do, Compressor continues to save the output to the Desktop of my internal drive, which has only 3gb free. So the job aborts because the disk is full.

I am using the latest version of Compressor (whatever number came out about 6 weeks ago) with Snow Leopard.

I am totally stymied. I either need a good book, or someone to tell me what I'm missing.

Bill