Thanks. I tried that. It didn't work. When I'm looking through the media files to add photos and video clips it keeps telling me "Searching for data file 'Bounce Across 04.dv'" then "The movie file 'Bounce Across 04.dv' cannot be found. Without this file, the movie cannot play properly." I click cancel and it does the same with a different file. It keeps doing this and I have to force quit to get it to stop. I've rebooted and I've followed the given advice, and it didn't work. I'm getting to the point where I'd rather have a PC just so I can use Windows Movie Maker again. And I have come to hate PC's because obviously Macs are far superior BUT not when it comes to WMM vs. the newer versions of iMovie!

Any other suggestions or advice? Anyone else have this problem? Please help! I am going crazy with frustration.