Why is a video clip from iphoto not compatible with imovie?

i have a video clip in iphoto and when i try to add it by dragging it into the videos in imovie, it says "the file will not be imported. it is not compatible with imovie". this video clip was taken with my friend's point and shoot type camera, then put on her computer, then put on a flash drive, then put on my computer. thank you so much for any help!

Welcome to iMovie Discussions.
Some "..point and shoot.." cameras create movies in an iMovie-compatible ".mov" format, but others create .avi files, or they record in the MPEG-1 format which iMovie can't unscramble.
Not all point and shoot movies are compatible with iMovie, even if they play using Apple's QuickTime movie player which iPhoto relies on.
These non-compatible movies need to be converted to .mov format, or some other compatible format such as DV or AIC, before trying to import them into iMovie. If you have QuickTime Pro, you can just open the movie clips and then use 'Export' to save them in the .mov format.
..More details from me - or others - later; I'm dashing out right now for a bite to eat..

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