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Imovie upgrade/Help/Education

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I am new to the Mac World, (thankfully) and I need some help. I have been working on my wifes old G3 Mac to use it for Video editing and she had an old copy of Imovie (v.3) on it. I have been trying to load a rather large video file in it to edit and it keeps rejecting it as I am afraid it is to large. I am familiar with Imovie 08 and am trying to get as close to that as possible, but I am not sure exaclty how close I can get and if I can get imovie without Ilife. I tried to load a copy of Ilife 08 and it immediately told me I was crazy. Any ideas or help would be appeciated.
 

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