I was frustrated at first too, using iMovie 08 and its recent software update, and not having the camera recognized by iMovie. But if you quit iMovie, plug in the camera, see it show up in the finder, and then open iMovie 08, it works perfectly.
Make sure you press the joystick button on the camcorder if the Access PC light is not on, and make sure the camcorder mounts in the finder before opening iMovie. Since doing it that way, I've been able to connect the camcorder with iMovie open, and it now goes to the import window.
Hopes this helps folks wondering if this camcorder works with iMovie 08. I couldn't find anything online yet confirming this.