sherrick51 wrote: Is it possible to ... record live video directly into iMovie?...
Yes. When iMovie recognizes more than one connected camera, the Import window will allow you to choose between them.
In addition to external iSight camera (sales discounted by Apple in 2006,) you can also use tape-based camcorders or other Firewire connected cameras. (USB will not work for live video into iMove.)
However, because you are not pleased with the video quality of your inbuilt camera, you will almost certainly be dissatisfied with an external iSight. The resolution of these old cameras is only 640x480. You will likely be more satisfied with the video from a modern high-def camcorder. I've had good results from Canon's VIXIA HV20, HV30 and HV40. These specific models are all tape-based, Firewire-connected cameras.
If you decide to use a tape-based camcorder, I suggest you at least try using it to do your recordings. Then import into iMovie when desired. Using the camcorder alone is significantly simpler than connecting the Firewire cable and Thunderbolt to FireWire Adapter needed to connect to your MBP's Thunderbolt port. Moreover, depending on your specific video application, using the camera separately may also be safer then having your Mac tethered to the external camera by the necessary FireWire cable during video recording.
Message was edited by: EZ Jim
Mac OSX 10.11.2