You can create a mountable drive and even encrypt it from the space you have on your partitions. Try Truecrypt and comment back. It's open source and free.
You could do that in every modern media player. e.g VLC Media Player, an open source mediaplayer. Add the videos to a playlist and you can view all the videos in the playlist without any glitches.
You could add the specific folders containing the media to the library and the media player can play from a library. You don't need to copy the media files into Music library but 'add' the folder to library.
Debut from NCH offers a great but it's a limited trail. After the trail period, you can downgrade to free version which does the job but with less customization. Cyberlink Youcam also records pretty decent.
Don't go for chrome if you're concerned about your privacy. Opera allows you to create two different profiles, refer this for help http://operawiki.info/operaprofiles