"No camera attched" error..using iSight in iMovie HD

I am using:
iMac G5 2GHz
OSX 10.4.2
iMovie HD 5.0.2
I have all software updates downloaded. I have all programs closed except iMovie. I only have the iSight (firewire port) and a Mighty Mouse (USB port) plugged in. Keyboard is bluetooth.
When I run iMovie I select the camera mode and select iSight...then the iMovie screen turns blue and states "No Camera Attached." I've tried unplugging and replugging in the firewire cable on both ends and have tried other ports. I've tried booting iMovie with and without the iSight already plugged in. I've tried rebooting including the Safe Mode reboot for maintenance. I've run disk utility.
The iSight works perfectly fine in Quicktime and iChat (yes, I closed them before running iMovie).

Ok, so now I've also removed all reference to iMovie in Library/Preferences under my login (also none were found under Harddrive/Library/Preferences). I've reset the Pram. Downgraded to QT 7.0.1.
It still does not work.
Couple of new notes. I noticed when QT or iChat run..the iSight light turns green. When you close those the light on the iSight goes out. When iMovie is running the iSight never turns green. So I tried running QT while running iMovie. In iMovie, it does not recognize any cameras as being plugged in.
I closed both programs and reopened iMovie. It then sees the iSight again (as normal under the camera mode selection). But still says No Camera Attached.
Seems strange that it recognizes it plugged in and available but doesn't work. I think I will reinstall iMovie unless there are other suggestions?

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