I recently discovered how limited IMovie is concerning video formats. I was shocked to find that one of the most successful movie editing programs for the OS X isn't capable of encoding a video in a very common format that, for example, YouTube requires as a usable video format. To get around this you can do one of two things for a Mac: Shell out $1000.0o for final cut pro, or download a freeware video conversion tool that is very easy to use and, well, free!
So what right?
Something I've never had the need to do but discovered is very effective at acquiring stock video footage, is using YouTube video downloading tools for finding clips of video material that I could splice into my videos. I've recently been tasks as part of a group project with creating a short movie that would spoof an MTV show called Pimp My Ride. As with every video project, time and budget constraints are a big issue and stock footage becomes a viable and, if done right, tasteful option.
Video clips that are not .mov (quicktime), or digital video format files will not work in IMovie. To get my stock footage clips I downloaded to work in Imovie, I used Isquint to encode my video clips in a format IMovie would understand. Although ISquint is a program that has been discontinued and is no longer for sale, its only a couple years old, works well, and is extremely easy to use.
Find several methods of downloading Youtube video here: CNet HowTo Download Youtube Video
Download Isquint here: http://www.versiontracker.com/dyn/moreinfo/macosx/28250
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