iMovie for 2008 Macbook not working

Hello! I am having trouble getting iMovie to work on my "new" 2008 Macbook. I don't have the origional install cd so I installed all basic programs from a 2003 mac install disk, which included

iTunes 3

iPhoto 2

iMovie 3

and iDVD 3

All other programs were sucessfully updated using the software update tool, except iMovie. when I would try and open it, It would load up with "Welcome to iMovie", and 3 options "Open existing project", "Quit", or "Create Prodject". When I choose Create Project, I get this window:

There is no other option than cancel. I have not found a fix for this. In the Software Update menu, It shows an update for iMovie, but there is a red error alert next to it and it fails every time I try and update.

The airport utility is also not downloading, but that's a post for another day.

Thanks in advance

-Dan