Best conversion for mpeg2 for use in iMovie 08?

Hi, there...
Still new to this Mac world, so I'd appreciate any support. I have an Sony DVD 101 Camcorder that records in mpeg2. My Mac won't recognize it, so I have to convert my movies to a format that iMovie recognizes. I just don't know what format to choose. I have the software, I just don't know what is the best resolution, etc. to convert to. Any ideas? I'd be most grateful. A nice picture from a 4:3 would do nicely! Thanks!

What format do movies have to be to use in iMovie 08?
AppleMan and Patrick have basically covered the import/capture formats. However, if you are importing files at the Finder level, then DV (DV audio with DV video), DV25, DVCPRO25, DVCPRO50, AIC, Motion-JPEG, Photo-JPEG, MPEG-4, and H.264 are probably the ones most commonly used. For audio -- DV, Linear PCM (Big Endian & Little Endian) , and AAC are probably the ones most used. NOTE: Avoid Apple Animation and Apple Video files. They will import and edit but will not export properly.

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