Definitive answer: WHAT CAMERA IS COMPATIBLE WITH iMOVIE?

This seems to be the most elusive answer I have ever searched for concerning Apple products. There seems to be no straight answer anywhere on the internet.
I have iMovie 6.0.3. I want to get my son a decent, affordable ($300-400) camcorder that is compatible with this program. I know that it needs to have a firewire connection. But this seems to be impossible to find.
I have been referred to a master list that is completely outdated. I've been referred to cameras that are NOT firewire compatible. It seems like this should be a really simple question to answer, but so far, I have had no luck, and Christmas is a month away.
We have a little cheap Canon still camera that has a video feature. THAT WORKS! But the image quality is terrible. I'm looking for a camcorder with a decent image quality that can download to iMovie.
DOES ANYONE KNOW?
(I'm starting to think such cameras do not exist short of the 3K pro cameras.)
If anyone can help me, THANK YOU! Happy Thanksgiving.
~B

G'day,
I've been ables to edit from a number of different formats including MPEG2 (DVD),
but any file format other than .dv needs to be converted to a .dv file first before importing to iMovie HD 6 (iMovie 7 is another animal altogether) To convert files use MPEG Streamclip (free) plus the Apple MPEG2 playback add-on (around US$25 from Apple) This proces takes a little longer but it allows the use of almost all, if not all, handycams on the market. It also has the added advantage of allowing the re-editing of existing DVDs when the original iMovie project has long gone. It appears that magnetic tape as a recording medium has a very limited future in almost any form (D8, MiniDV, MicroDV etc) and therefore direct streaming into iMovie up to V6 also has a very limited future. Since this is the only medium which allows direct streaming of .dv files, then future use of imovie up to V6 will be limited to what you are able to convert to .dv files from my limited analysis.
Regards
PA

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