I have more or less the same issue. I'm running the 10.4.1 iTunes version on my Mid-2010 17" MBP with Lion installed. So all this stuff is pretty up to date.
Before installing Lion on this machine, I imported a lot of .mov videos/movies into the previous version of iTunes without any problem.
Now I want to import into iTunes some .avi movies from my collection. Those .avi movies have subtitles, but the conversion to .mov is easy through QuickTime 7. (You just have to have your .avi and .srt files into the same folder and with the same name, you chose to "Save as", and the job is done within seconds. You get a "muxed" .mov file with integrated subtitles. Cool.)
The problems begin when I want to import that movie into the iTunes Library, 'cause it's absolutely now way to succeed. Opening the new .mov file through iTunes doesn't work. Same result wishing to go through the "Add to Library" command in iTunes, simply trying to drag-n-drop it into the main iTunes window or even dropping the movie's folder into the Library under the path "users/Music/iTunes/iTunes Media/Movies".
The nasty thing is that this move looks working fine when the movie is converted through the iSkysoft Video Coverter, but there are some problems: the present version of this app doesn't accept subtitles and the conversion takes far more time then the one through QT7.
But the nastiest thing is that I tried to add the same movie to a 10.1 iTunes version Library, on someone else's Late-2008 15" MBP running Snow Leopard and it just worked perfectly fine !
So, could anyone explain me what's wrong here: the OS ? the iTunes version ?
Thanks so much for any help.
While I still haven't found a way to get drag and drop or file>import to work again I did find a way to get my QT files into iTunes.
When opening a video file in QuickTime there appears a small hover menu in the bottom right. Clicking on it will bring up several send to options including iTunes among many others such as YouTube, FaceBook, Vimeo and more.
In my case I had 12 videos to add to iTunes which meant that I had to open each of the 12 files individually and repeat the steps one after another after another.
I'm glad that there was a way to get the files into iTunes but am disappointed that it isn't as easy as it once was.
Hey, frankly, I guess you were lucky. And I also guess we are the only two ones which have this issue ! Strange...
That little bottom right menu indeed allows you to "share" the movie through different destinations, iTunes included.
My problem is that you can't convert an .avi (with subs) to a .mov other than using QT7.
And the nastiest is that when you try to open the new minted .mov, you can't open it with the present QT version, but still with QT7 !
And guess what: QT7 has no bottom right menu (or something equivalent) !...
No way trying to go to File/Share, 'cause you get nothing to fix the issue.