I will try to find the preference file to delete.. If you know offhand where it is, let me know, and I'll give it a shot..
The preference file is in your user (Home) folder Library>Preferences and is named "com.apple.iMovie8.plist". First close iMovie, then trash this file. When next opened iMovie will create a new file with the default settings. To change any settings, in iMovie's menu go to iMovie>Preferences and adjust settings under each of the 4 tabs.
When iMovie is acting abnormally, usually the first troubleshooting trick to try is trashing the preference file. This applies to any version of iMovie. The preference file can become corrupted at times, particularly when iMovie quits unexpectedly (crashes). Refreshing the file, as described, will often fix any problems.
You mentioned using a speed of 33%. I would definitely avoid doing this within iMovie, as it is not one of the preset speeds that appear on the speed slider - 12.5% and 25% are OK though. A free program like JES Deinterlacer can do custom speed changes and the resulting file can be imported to iMovie. A search will find it for you if needed, otherwise post back for more information.
First things first though - try deleting the preference file, then report back. Sorry to hear you are seeing this issue - things generally work great with my setup (although I rarely use speed changes).
PS Just thought of something else. You mentioned inserting freeze frames within the slow motion sequence. Possibly that is what is causing the problem. Do you see the jumpiness before adding the freeze frame?
John
Message was edited by: John Cogdell - added PS