Media Center in Windows 7 records TV to your C drive by default. However, you do have the option to set Media Center to record TV to a different drive. It can be any drive attached to the PC, either external or secondary. Unfortunately, recording to a network share, even if it is a mounted drive, won't work.
First, you'll need to attach your external or secondary drive, if it isn't already attached.
Open Windows Media Center and browse to Tasks > TV > Recorder > Recorder Storage. Click the (+) or (-) sign next to Record on drive to

Once you've selected your secondary or external drive, click Save.

A Recorded TV folder will automatically be created on the new drive. For example, if you are recording the the H drive (as I am in the example below) your new recorded TV path will be H:\Recorded TV. When you've recorded a show you'll see it that it is being saved to it's new location.

Windows Media Center doesn't give you an easy way to change the folder where you save recorded TV, only the Drive. If you want to change the default recorded TV folder, I've got a write-up on how to do it.
Note: Obviously, if you have Media Center setup to record to an external drive, it's going to fail if you disconnect it. So be aware if you ever move the external drive to other computers. Media Center won't give you a warning, however, it just won't record.
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