Fact. iMovie 09 will not recognize the original Flip video camera’s AVI files. For awhile I was doing a complicated conversion using QuickTime Pro that converted the files to DV files which caused some quality degradation. Not happy with that solution anymore I did some more Google searching and came across this thread. As it turns out Flip released a new version of their FlipShare software which allows you to export an exact copy of your videos in a format that iMovie can recognize!