Currently Being ModeratedOct 31, 2012 8:13 AM (in response to rsrskinner)
As you are probably not running the ancient basic 10.0.x, please confirm what version of OS X you actually have and what version of iMovie.
Currently Being ModeratedOct 31, 2012 10:23 AM (in response to rsrskinner)
If you are using iMovie 11, the answer is yes. You can drag the handles in the audio file in the timeline.
See this link and watch the video called ALL NEW AUDIO EDITING.