Everything I've read has said that iMovie '08 is compatible with MPEG-4 video files. I cannot get them to import, they are greyed out in the import file menu and I cannot drag and drop.
Content must be converted to QT compatible MPEG4/AAC or H.264/AAC profiles. If you are using Handbreak, select the TV or iPod preset option. (The TV option should provide better quality but takes more time to convert.) If using an older version in the TV preset, make sure the AC3 passthrough option is not active. iSquint/PunyVid, Visual Hub/FilmRedux, FFmpegX, MPEG Streamclip, etc. are also viable alternatives for converting VOB title sets to iMovie edit compatible files. I prefer MPEG Streamclip (free) here but it does require you have the QT MPEG-2 Playback component ($20) installed while the other applications do not. However, it allows you to convert to all iMovie compatible compression formats but is a full-feature conversion utility than is often confusing to new users due to all of its options.
I even tried adding them to itunes because I saw you told someone that it converts them. Do you have to do something besides just import it into itunes?
The QT Structure embedded in the current OS is not "conversion" compatible with multiplexed content. DO NOT USE QT APPLICATIONS FOR FILE LEVEL CONVERSIONS. (This includes iTunes, QT Pro, GarageBand, etc.) Use a third-party, MPEG-based application instead (any of those mentioned above or a handful of others) if you wish to retain the audio content.
I also tried changing the output settings on handbrake to an avi format because some of my movie clips from an old camera were .avi and they work on iMovie, however, that didn't work either. I tried playing with the video codec (it has 3 options for the MP4 file: MPEG-4 (FFmpeg), MPEG-4 (XviD), and H.264 (x264)).
Compatibility is ultimately determined by the compression format used -- not the file container. Unfortunately, many proprietary MPEG-4/H.264 compression formats do not conform to MPEG standards for some profiles or combine profiles which make them unsuitable for/incompatible with QT application video editing. Steer clear of them. Most of the conversion applications mentioned have iPhone, iPod and/or TV export presets which are all compatible with iMovie '08. Use them until or unless your are familiar with all of the proper setting to be used.
