iMovie '06 Video Playback Problem

[Grasbak]

I recently upgraded to iLife 06.

Now if I import a clip into iMovie, then apply, for example "fade in" at the start it results in jerky playback.

Anyone else had this problem.

It renders the whole program useless.

 

[eskeleto]

iMovie HD 6.0.3 playback problem

I have this same problem with transitions. They render the playback fuzzy whenever a transition occurs (in my case, cross dissolve).
Not only that, but suddenly playback is not registering the correct duration of clips for still images. For instance, it will play a clip set for 3 seconds for 5 seconds, eating into the duration set for the next clip. That clip will then only register for a second or so.
Infuriating.