Caught between Imovie 09 and FCE

I am caught in between these two programs.
I am a beginner and only need the basic editing tools available in Imovie, yet I have an AVHD camcorder and want to import footage at maximum resolution. I have been importing at full resolution and exporting to Quicktime. There is a significant reduction in quality in the final movie (even when played back on the computer).
Does anyone know if '09 will be updated any time soon to allow for full HD editing?
Are there are editing programs for mac that are simple to use but allow for lossless editing?
Any suggestions would be much appreciated.

So here we are, more than half way through '10 and we're still stuck not having a lossless means for editing without mortgaging the house?
I've got iMovie '06 and I've been trying to use it on Snow Leopard (10.6.4) and I'm getting crashes which detract from my happy life.
Do we have any indications that Apple might be fixing this in the near future?
I've got video of my daughter's HS graduation that is PRECIOUS and I don't want to be dropping bits left and right.
Thanks for everyone's time.

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    "..which is the difference between FCP and FCE?.."
    FCE is Final Cut Express, a cheaper and 'cut-down' version of FCP (Final Cut Pro).
    FCE changes HDV (hi-definition) video into a slightly different format called 'Apple Intermediate Codec' when it's importing HDV material - just like iMovie HD does. This means that importing is generally slower than importing ordinary DV, because the movie has to be converted while it's importing. On a G4 PowerBook or iBook HDV might import at half-speed, or take even longer (..maybe 4x 'real time'), as you've found.
    The latest version of FCP can import HDV, and edit it, without any conversion, Apple says. But I don't know if that applies on any Mac, or if that needs a special capture card to be fitted into a PowerMac. In theory, I'd expect that importing and editing HDV using FCP HD 5 (..the latest version..) would be faster than on a PowerBook - because there's no conversion involved - but I can't say for certain till I receive my latest version of FCP (..I just did an Apple "cross-grade" to convert my FCP HD 4.5 into FCP HD 5).
    HDV doesn't take up any more room on a tape than normal DV, because the high-definition is 'squashed' onto the tape, using MPEG-2 compression. Because iMovie HD and FCE HD can't handle this kind of compressed material directly, they convert it into the Apple Intermediate Codec, and that form of the video takes up more storage on a hard disc than the normal DV does!
    So although normal DV uses about 13 gigabytes of hard disc space per hour of running time, the converted HDV (..converted into 'AIC'..) takes up, er ..I'm looking for a recent project ..most are on an external disc ..are here's a simple one: one-and-a-quarter minutes' worth uses 904 megabytes; nearly 1 gigabyte! ..Here's another: four-and-a-half minutes' worth takes up 6.5 gigabytes!
    Using normal DV, 6.5 gigabytes would hold half an hour's worth of video, not 4.5 minutes' worth!
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    I don't know if FCP HD 5 would store imported footage in the original HDV format, that is with the same storage requirements of ordinary DV - like HDV tapes. If so, that means that you could store hi-def (..if you're using FCP HD 5..) in just the same amount of space as normal DV ..but I don't know for sure. Maybe you could ask in the FCP Discussions. I probably can't tell you till next week or so..
    Where to get a 300gb hard disc? I'm sure there must be at least one shop, or electronics store, in Istanbul which sells them at reasonable prices. Otherwise, look online. There are many companies which now sell 300gb discs: Maxtor and LaCie, for example. But you do need one with a FireWire connection; not just USB. You don't need to buy from an Apple store: buy one from any computer shop ..an external hard disc for a PC works exactly the same ..but you must format it for use with a Mac, as described before.
    All I know of Istanbul is Cumhuriyet Caddesi, Taksim Square, and the areas around what used to be the floating bridge, and the Spice Market, and round Haigha Sophia, but there must be lots of computer shops somewhere in the city.
    "..I have never used iMovie for editing, I understood it is only good for capturing, sample and concise.." and it's also good for transitions, titles, adding photos and audio, adding video effects and for audio tweaking. And it integrates perfectly with iPhoto, iDVD, GarageBand ..and now 'iWeb'.

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