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using imovie project in Final Cut Express

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Hi,

i;ve recently installed FCE 3.5.1 and am trying to move over from iMovie to the more advanced features. However i want to rework footage i imported as iMovie project for my friend. i can open it just fine but the sound seems to be replaced by series of beeps. But when i preview a clip i can hear the sound just fine.

I would have thought the transition should be seemless.

Also what file formats are compatible with FCE. I have a Sony HD camcorder which records in Mpeg 2. It won't play on quicktime even with mpeg 2 codec installed from Apple....but if i can edit it in FCE i wouldn't be too bothered. I was told that i can convert them to DV using toast...which is fine but if there is a better solution for FCE i would appreciate it. I am contemplating just getting a decent Mini DV camera instead....prefferably a hiDef one.
 

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