I created a movie and am trying to copy it onto a CD-R to give to people. When I click "Burn project to disk" it says it's too large. I tried using "compressing for quicktime for a CD-ROM" and then "compressing under full quality" but it does the same thing.
iDVD does compress the file down but you won't notice any worse quality loss than compressing it down into a Quick Time file, at least in my experience. There have been times where I've tried to burn files onto a CD and it says the file is too big. That's normal, you can't burn a 2.2 GB project onto a CD that only holds 700 MB. You can export it to iDVD and burn it that way, or you can export it out of iMovie it as a Quick Time file and burn it in Toast at a low burn speed to minimize the errors that may occur during the burn process (you can also simply drag your iMovie file into Toast as well to burn it to a DVD).