iMovie--new JVC hdd camcorder issue

I tried to search, but I may not be searching the right keywords.


I just bought a new JVC camcorder, forget the model number, but its the one with the 20gb hdd in it.
The file extension it puts on the files is .mod. I can import these into the JVC software ONLY and can then convert them to whatever I want.
Problem is, even at the highest 1920x???hd mpeg4 format (mpeg 4 because iMovie doesnt read mpeg2)...the quality on playback is horrible compared to the original.
I havent tried recording the playback directly in iMovie and dont know if I can. I'm a n00b at this and will give it shot.

I guess my main question is how to do I get the proper video quality and be able to use iMovie to edit the video?
The JVC says it records in mpeg2, but it shows as a .mod file on the hdd which confuses me. I cant create the movie as a mpeg2 with the jvc software but iMovie cant edit an mpeg2, according to what I've found.

I hope this all makes some kinda sense and thanks in advance for your responses.

Scott---Video editing n00bie

Put the camera in VCR mode, turn on iMovie and try to import it directly into iMovie

Also I just found this on jvc's site

High-Quality MPEG-2 Video Recording (up to 720 x 480/60i in ULTRA mode with Dolby Digital Audio (MOD file)

Thanks for the info...

The only way to get the camera into a "vcr mode" is with the 1/8th" to RCA cable that you would normally use for the TV. My only way around this is to buy ANOTHER piece of hardware like a Dazzle unit. I'm sure this will work and may be my only solution if I want to keep this camera.