iMovie Issues

I am currently trying to import some video into iMovie 3.03 from my miniDV camcorder via Firewire. When importing I can hear the audio perfect (from camcorder) after I am done and save my project the audio is missing when I play the file. It is saving it as a .mov file and plays in quicktime. What am i doing wrong? I have tried everything in apple support (edit volume - cranked up to 150%, extracted audio, pasted it over video..etc..) - Nothing worked. Any help is greatly appreciated I am trying to get my 3 year old daughters xmas footage to her grandparents. I posted this already under Mac Applications but noone has replied, so I thought I would give this a try. Thanks