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Can't Drag Video To Edit In iMovie

Joined
Jun 14, 2010
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Your Mac's Specs
21.5" iMac, 500GB HD, 8GB RAM, 32GB iPhone 4S Black, 32GB iPod Touch
When I try and drag a piece of video to the top it gives the little green + sign put the video doesn't appear, and when I play nothing happens. It's an MP4 file and the same file was working fine yesterday. I tried to make a screen recording to show the problem, but YouTube is taking forever to process.

http://www.youtube.com/watch?v=0cfRKRJ9tRo
 

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