I just installed the new iLife up-grade to my iMac. The iMovie will not recognize all my avi movies (the old iMovie did).
More likely, iMovie '08 recognized the AVI compression formats and cannot edit the audio and/or video so it won't let you import it. Remember, iMovie '08 will only import files that it can edit. iMovie '06 only edited DV compressed files and so it automatically converted your AVI files to DV as they were being imported. For example, many Casio cameras use Motion-JPEG/DVI ADPCM compression in the AVI file container. iMovie '08 is quite happy to import/edit you Motion-JPEG video track but doesn't like the DVI ADPCM audio. Kodak owners have a similar problem with Kodak's use of MPEG4/µ-Law compression combination in an MOV file container. (Once again the video is fine but iMovie doesn't like the µ-Lay audio preferring a more standard AAC (MPEG-4 audio) format to go along with the MPEG-4 video.
Is there a safe converter that I can use?
Since these files are already conversion but edit compatible with your system, you have quite a number of options. You could, for instance, drop/import them to iMovie '06 and they will be converted to DV clips which can be edited in either iMovie '06 or '08. If in iTunes, they can be converted to H.264/AAC using iTunes. If you have QT Pro, you can use that to convert them to any number of edit compatible file formats. In fact, you can even use GarageBand to export the files to an edit compatible format. Then, of course, you can always download any of the free, donationware, shareware, or payware converters available on the internet and frequently recommended here.
Is there an easier way?
You can always continue to edit in iMovie '06.
What's a mother to do?
Sorry, that's not my department.