I just found a new thing that wasn't in 7.1.1. I can now use my Casio Exilim EX-V8 with iMovie. For some reason Casio uses H.264/WAV for most of their cameras instead of AAC. It seems like a mismatch of codecs. Anyway, it works now. I'll try an AVI in a minute.
Edit: Holy ShNike! An AVI actually worked! Could it possibly be that I have QT Pro? I'll try deactivating it to find out.
Edit #2: Amazing! I disabled QT Pro and it still worked! This opens up iMovie to a bazillion more cameras. Get the word out. Converting videos is done away with!
https://forums.macrumors.com/threads/498067/ Please post in this thread if your camera now works with iMovie.