Not sure what's going on with your iMovie '09 because the test I performed this afternoon was recording in iMovie 09 from the iSight to a new event, taking the entirety of the recorded clip, putting it into a project, and then opening the clip adjustments to change the speed. As far as the lettering is concerned, I believe there's an option in Photo Booth to change the orientation, i.e. whether it will capture a mirror image or not...