I've got a Sony HDR-SR5 and works no problem with iMovie 08, does not work with iMovie 06. You will need a converter such a Voltaic to get it working with iMovie 06. As a side note, the SR5 (so assume the SR-7 will too) work really well with Final Cut Express 4.
You can also import the movies in to iMovie 08, save them and then import into iMovie 06
A little warning, if you take a copy of the video files off the camera and then delete them off the camera you will need to convert them to work with iMove 08 and FCE 4. you can not copy the files back onto the camera and then import them into iMovie 08 or FEC 4.