Yeah, it uses temporary space (the movie is exported to a file, and then that file needs to go through a secondary process right at the end), and so you need to have twice the size of the exported movie file of space free on your hard drive. As your file will be huge, you can also expect quite a significant wait at the end of the 4th pass. To save time you may want to consider exporting with one of the "Faster" presets, which will only do a single pass through the file, though will result in a slightly lower quality. It'll save you time in figuring out if the export will work though.