Best digital camera for iMovie08 in the 'ultra-compact category'

which one?
note: i was excited about getting the new Kodak Easyshare V1273 but seems like importing the videos into imovie is a hussle. i basicly would like to get the best high-definition resolution in the market today but in an 'ultra-compact' category i can carry with me. any recommendation?

you said it is easy operation, but is it fast?
video quality decreases a bit due to the conversion?
what camera like the ones i mentioned you recoment?
Yes, the conversion is fast since the video (QT MPEG-4) is passed "as is" from the MOV file container to the MP4 file container (i.e., there is no re-compression of the video so quality is exactly the same) while only the audio is converted if applicable. By that last comment I refer to the fact that neither Kodak nor most reviewers bother to say what audio codec is used but that historically, Kodak uses µ-Law 2:1 audio compression which cannot be edited in iMovie '08 and must be converted to AAC in order to be placed in the MP4 file container and that the AAC is compatible with iMovie '08.
As to recommendations for specific cameras, I rarely make any. To me, the choice is very personal -- almost intimate -- and includes everything from "the feel" of the camera in your hand to its looks. The technical specifications are merely one aspect for consideration. Features are another. Normally, I would make a list of specs and features, arrange this in priority order, make a list of models meeting my requirements, and only then go shopping to evaluate the look/feel of those models. I may spend up to six months shopping and frequently bring my own media to the store to capture sample files for evaluation at home. Except for my first film camera (a Kodak Retina III-C, 1954-1957 vintage), I still have every film and digital camera I ever bought and all are still in good working condition. My advice is the get one that has both the specs and the features you want/need and feels/looks right to you and treat it as if you plan to keep it for at least 30 years.
Also, is the conversion using Quicktime straighforward/well done/optimal (ie. the converted audio is great/excellent?), or since i haven't bought the Kodav V1273 do you recommend instead buying something that is fully compatible with imovie out of the box? (my main and final instest is being able to use imovie.
The Conversion is very straight forward. Simply
a) Open the clip in either QT Pro or GarageBand
b) Select the "Movie to MPEG-4" export option
c) In the "options" window select the "MP4" File Format
d) Under the "Video" tab select the "Pass Through' Video Format option
e) Under the Audio tab select: AAC-LC (Music), Data Rate 64 Kbps for mono (128 Kbps for stereo), 44.1 KHz sampling rate, and Better or Best encoding.
Converted audio will be the same quality as the original -- just slightly larger in file size. The settings listed above are much higher than the original so nothing you can hear will be lost. The V1273 is listed as using the QT MPEG-4 video codec. This means it is compatible with iMovie HD as is and will be compatible with iMovie '08 once the audio is modified. About the only problem you might have is the selection of a Kodak model using the M-JPEG/µ-Law video/audio combination. This format cannot be "passed through" and would require separating the audio for conversion and replacement of the original audio if you want to preserve the original video (which is once again iMovie '08 compatible but not not MP4 file container compatible). In other words, any Kodak digital camera storing its video as QT MPEG-4/µ-Law can use the "pass through" work flow described above. If you find that any of the newest models use AAC (with valid data rate/sampling rate combination), then it will be compatible with iMovie '08 "out of the box." But since most manufacturers are strangely quiet regarding their audio compression formats, it is difficult to evaluate total compatibility based just on the specs given.

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