That flicker is common with the Ken Burns effect. Importing your photos in with the Ken Burns effect turned on seems to help a bit, but won't totally get rid of it. Usually you notice it more on the iMovie preview playback than on the final product, which, however, does not seem to be your case. I can't recall offhand the tech explanation, but someone on this formum can tell you that.
On the Apple website you can buy Photo to Movie, which is an app that purportedly has a smooth Ken Burns type zooming effect together with a lot of other good slide show effects. Photomaggico is another good plug-in app. Both work well with iMovie.