Update
Incase this helps anyone out there with a Sony HDR-UX1, it only took me all weekend of searching and nobody told me that this needs to be done!
!!! DONT FORGET TO FINALIZE THE DVD !!!
Finalizing the DVD (i presume) adds some info on the disc that will allow the mac (and iMovie '08) to be able to read the minidvd. (it also stops any more data from being written to the DVD.)
-To finalize the DVD put in the DVD to the camcorder, then look for an Icon that has a "disc" and "storage" looking thing on it. This will be options for the disc or the sd.
-Choose finalize dvd, wait for it to finish, don't bump it
-Once its finished, unplug and plugin the USB, a dialog should pop-up asking if you'd like to open iMovie, from there you can import the video.
-Be glad I posted this to save you the hours of searching, you're welcome.