iMovie 9 cannot create new project
I was having trouble with iLife '11 not recognizing files to be imported. I tried to create a new project, just to see what happens, and it said "Please check the disk to ensure there is enough free space and you have permission to write projects.". I have 45GB of free space - that is not an issue. I have repaired permisions on the disk and re-installed iLife '11. Still getting the same error. I'm running MacOS 10.7.1 on an alumninum MacBook. Any suggestions?
MacBook Aluminum, Mac OS X (10.6.1)