iMovie was free, appleworks you had to pay for. There was quite a huge outcry when Apple decided to start charging for there iPrograms (iMovie, iDVD, iPhoto and Gargeband) and turned it into the iLife package and charging 49 dollars for it.A nice look back.
I'm pretty sure you had to buy iMovie 2 and AppleWorks separately. iMovie was bundled with some Macs. But I don't think either were included with OS X.
I like when Apple charged for software.