I have two hard drives (one internal, one usb, both connected to the same PC), each has a 'movies' folder. Can I somehow view both 'movies' folders in one folder as though all files resided together?
4 Answers
If you are using Windows 7, that's exactly what the "Libraries" are for.
You probably even already have a "Videos" library, you just need to add the folders you wish to include in that library.

More information from Microsoft on using Libraries in Windows 7: Libraries
Blurb:
Libraries—new in Windows 7—make it easier to find, work with, and organize files scattered across your PC or network. A library brings your stuff together in one place—no matter where it's actually stored.
Perhaps also check out this related SU question: Adding more than one folder at once to the Music Library in Windows Media Player
Right-click at Videos library, select properties, click Add and find the video folder you want to add. Repeat once more to add the second folder. You'll have them both appear under "Videos" now. To 'merge' 2 groups, right click -> Arange by -> select anything but folder.
Note: I'm using Windows 8 atm, but I believe the process is very similar, if not the same, in windows 7.
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I'm assuming you have 2 movie folders because of the limited space on both of the drives, and you want some way of merging both of the files together to have 1 clean list of movies so you can browse your list. If So, in the physical sense, you obviously can't.
But what you can do is make a folder on your desktop, make shortcuts of all the folders or files, and that will give you the entire list or playlist of your movies in 1 list in that folder on your desktop
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This is very possible through the magic of symbolic links. Unlike shortcuts, symbolic links behave exactly like the real files allowing you to watch and edit all your movies like they were placed on the same drive.
There are quite a few tools available to help creating such links, for example Symlink Creator. You might have to google though, to find one that suits your needs better.
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Symlinks just stop working when the item they point to is deleted. – Blacklight Shining Sep 15 '13 at 18:59
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@BlacklightShining You're right. When I tested it out for my reply the links disappeared after deleting the source files. I probably created a folder junction instead of a sym link. – Zerobinary99 Sep 15 '13 at 22:53
Arange by-> anything but folder. Edited my answer. – Luke Sep 15 '13 at 18:55