I'd like to add:
(Sorry, for the long winded post. I hope it is not to confusing. I try my best to explain, well).
iMovie-HD'06:
- can't handle AVCHD
http://en.wikipedia.org/wiki/AVCHD
AVCHD is saved as h.264/AVC, while in the usual DV that iMovie produces and handles you will find something similar to mpeg2/jpeg-movie with a high bitrate. DV is good for cutting, because you can cut and the movie stays intact, while in other formats it will have to recalculate, where the new beginning and end of the movie-clip is.
- it can't handle older iMovie projects (I tested it with iMovie 3, while iMovieHD-05 can read the old projects, iM-HD'06 will cut off a few minutes at the beginning and the end, when you load the project to edit it).
- when you have cut the video and want to keep the source format (DV), iMovie will not produce a copy just without the cutted scenes, but it will write the file new and transform it to DVCpro (cutted scene are deleted now). In theory you lack quality by converting from DV to DVCpro, even if you will notice that the bitrate is the same, before and aftrwards (all iMovie Versions I know do this: 3, 5HD, 6HD).
- when you want to convert the iMovie project to h.264 or another format that will save you disc space, but keeps the quality still good to the human eye, you can
a) use the encode options in iMovie. Along "best quality", which will create that DVCpro file from the DV project, you can pick several different formats/codecs (h.264, divx,...), but they are old and with the same settings don't produce the same good results as
b) Handbrake, which has the newest h.264 and divx codecs available for PowerPC-Macs.
The Handbrake version that runs under 10.5.8 can use the DV file in your iMovie project folder as a source (older versions of Handbrake couldn't).
But Handbrake alsways takes the whole file in the iMovie project.
Yes, you cutted out stuff in iMovie and see that your 1h movie is now 20min, just as you wanted it to be. But! in the iMovie project folder you will always have the old file with the whole crap in it, that you already cutted out (hence you can choose to export/send the cutted movie by selecting "best quality" or "other format" inside iMovie).
So, what to do?
Use mepegstreamclip. There you can cut off crap (e.g. the 40min. of crap from your 1h video, that you don't need) and then save the file. The new file will just be a copy without the crap. It is still DV (not DVCpro).
That file you will use in Handbrake.
However, if you want to use a newer h.264/x.264 codec in iMovie, you can still install these two codecs (the result will still not reach that of Handbrakes x.264 codec):
x.264 QuickTime Codec 1.1 (freeware)
http://www.macupdate.com/app/mac/20273/x264-quicktime-codec
x.264 codec (freeware)
http://www003.upp.so-net.ne.jp/mycometg3/ (scroll down to 10.4/10.5)
mpegstreamclip btw. can use the above two codecs as well.
You can use mpegstreamclip to rotate the picture (e.g. if you have shot the video with your iphone and you held it upright with the l0ong side and not wide like a panorama view.)
you can cut off pixels at the sides (which is possible in iMovie to some extend and Handbrake)
iMovie'08:
- does an interlacing to all material without that you are asked. Halfs theoretical vertical resolution during every export. (Which you will only sometimes notice, when you will look the result from a DVD on a Tube-TV, not on a PC or Flatscreen)
- DV that comes in will be transformed to aic. Which is lossy, but most often you will not notice it.
Mind I am not a video-pro, I just pass on, what I got warned (the AVCHD part and the whole iMovie08 part) and what I experienced when working with imovie3, 5, 6, mpegstreamclip and Handbrake. Your own perception and needs can differ.
PS: you can get to your iMovie clip files, by clicking on the black&white clip icon and holding ctrl. Choose "show package content", go to movies (IIRC).