To use the navi system, you insert the disk, program in your route, and then remove the disk and you can use the drive for movies/music. But any time you're going to input a new destination, you have to put the disk back in to program the route.
There is an attachment tat lets you hook up and external USB hard drive, but it's terrible... like REALLY terrible. Pretty much unusably terrible.
The best way we have found to get both 100% all the time is to hook up an ipod to hold all your music and videos, and leave the nav disk in the D3's drive all the time.