I am installing OE on EEE PC 701 which has 4GB SSD for OS, and externall SSD (currently 8 GB but might expand it with more).

There is no option in installer to change location of Home directory during install process. Is there a way to change it to external SD, or even better, transfer only Video folder to external SD, so it will be shared on network with included Samba?

I expect most of the big video files to be stored in Video folder, and it would be most practical.

I apologize if this question has been answered before, but I did not find it here.
When I installed Lubuntu with XBMC, i sorted that during install process simply by formating external SD to ext4 and setting mount point to /home.

The home folder for the root user is /storage, so if you want to move the home folder simply modify extlinux.cfg to use the /dev/blah (or LABEL=BLAH) equivalent for the 8GB SSD card instead of the current location on the 4GB SSD. OpenELEC will reinstall itself if there is nothing on the 'new' /storage when the system boots, or simply copy files over.

The default samba config maps /storage/videos as the \\openelec\videos share. You cannot remove /storage/videos as it will be automatically recreated by init scripts on boot, but you can create your own samba.conf file that maps it to /media/sdcardname or something else.