Did you check Apple's compatibility list for camcorders and iMovie 08?
http://support.apple.com/kb/HT1014
If it isn't on the list, it won't work with iMovie, any version.
You should consider some other camcorder format, as DVD cams are the worst choice if you plan to edit your movies. This is because a DVD is intended for record and playback only, without any editing. In order to edit, the DVD's MPEG2 files will require conversion to the format needed by iMovie, which is DV Stream. If you buy a compatible DVD cam, iMovie 08 can do this, but this is at the expense of the video's quality. Save yourself the grief and buy what will give you exactly what ALL iMovie versions work seamlessly with and that is a miniDV tape cam with Firewire for capture.
Research appropriate camcorders here:
http://www.camcorderinfo.com/