Can iMovie'11 view & edit HD video clips??

I am trying to find an answer to this question and have no success yet.

I had a real problem with this, having thrown away a PC and Pinnacle to upgrade to an iMac complete with the much raved about iMovie. After many many months of digging around, the only solution I have been able to establish is:
1. The codec Apple use (namely AIC) reduces the 'quality' of the HD video during the upload. I have .mts native files and the finished product proves to be a reasonable quality standard definition movie.
2. Final Cut Express uses the same codec.
3. Final Cut Pro uses a codec which Apple say will resolve the loss in quality, but for me as a keen enthusiast, makes the cost wholly undesirable and out of reach, besides being a very complex piece of software aimed at the pro.
4. Adobe's Premiere Elements 9 is a solution that will maintain the HD video image, together with 5.1 Dolby Digital surround sound. So, I would highly recommend this to you. Only issue from here on is that there are some handy functions in iMovie which you wont get in Premiere Elements, such as, the Date & Time stamp screen function.
All this to edit HD footage from a Sony video camera! Its a bit like inventing a car but oil hasnt been discovered
Good luck!

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