I ran into a strange software bug this past weekend. From my Flip camera, I imported movie clips into iMovie '08, created a project combining various clips, added and edited elements, then tried to export the project. All elements (audio, transitions, titles, sound clips) were preserved except for the video. It didn't matter the format (AVI, MPEG-4), compression, or added elements. None of my Flip clips could be exported properly.

The problem was finally resolved when I saw the following Apple Support Discussion post:

"This is normally the product of importing and editing Apple Animation (or Apple Video) source files. This is a known bug since iMovie '08 was initially released. Either convert the files to a fully compatible compression format before importing them to iMovie '08 or use iMovie HD as the editing application. iMovie '08 is the only QT software that seems to be afflicted with this problem."

I used MPEG Streamclip to convert my Flip video clips to MPEG-4 and had no more problems manipulating them in iMovie.

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