A terrible business
I know a number of serious film makers who do use iMovie (at least iMovie HD) for small projects like low-budget TV documentaries. It really seems to be a good-enough tool up to semi-pro level where perfection and absolute control are not required.
Audio is another matter. Garage band is great for chucking together musical ideas. I love it for this purpose. However, doing editing (imho) is a nightmare due to the lack of sample-level precision and a fairly small tool set in terms of effects and filters. The best you could do with garage band would be some sort of noise gate. For hiss - and this is pretty crude - you could duplicate the audio and split it into a bass and mid channel, and a high frequency channel using low pass and high pass filters respectively (included in your core audio effect set). You could then use a noise gate on the high frequency channel to avoid the full-spectrum cut-in cut-out effect of a noise gate. It will still sound dreadful.
Staying with free tools, there is the noise-reduction algorithm in Audacity (a much better editor btw) but I've never got satisfactory results from this.
The previous post is right pointing you in the direction of proper audio tools, and Logic Studio is good value. You get Soundtrack Pro which, although a little unstable, is far more powerful than any free tool and is designed for this very task. Logic provides a very tidy set of gates, compressors and noise reduction tools.
All this said, the adage "poo in, poo out" is very true. Developing the skills to record your source material with as little background noise as possible is key. Using a good wind baffle on a windy day sure beats trying to extract the broad-spectrum Braughhhhh in Soundtrack. Similarly, I'm guessing doco makers would sometimes use near-field or directional dynamic mics for interviews to leave out most background noise in the first place (I don't actually know this for sure, but it's what I'd do). Remember, in TV shows, all ambient sound is mixed in later. A Party for example, is silent (freaky to watch people dancing in silence during a shoot) except for the dialogue parts being captured on condenser mics. The music and hubbub is dubbed in later for atmosphere. Try recording the dialogue in a real party and, well, you'd probably be in real trouble. You'd certainly have more hope with a dynamic mic, but it would probably be easier to step out onto the balcony for the interview. Good luck.