Unable to import after OS X Mav 10.9.3 update

I no longer have the ability to import using the down arrow in iMovie after this update. My home directories are greyed out and has a constant reloading symbol to the right of it. I've tried re-installing but with no luck. I can only import by dragging and dropping to the time bar. I suspect the new OS X update is the culprit since it was working before the update.

Running:

iMovie Ver: 10.03

OS X: 10.9.3

Is anyone else running into this issue?

Here is a screenshot. Notice how its greyed out under Favorites. It's stuck like that.