Does iMovie 08 actually work at all?

Long story short, I was trying to make a dvd of some old movies of our family for my daughter's upcoming wedding. The movies are in .mpg format. iMovie won't import them as .mpg. After reading some articles and forum posts I googled, I've used MPEG Streamclip to convert them to DV (which iMovie wouldn't import) and to .mov (again, which iMovie wouldn't import) and so I'm stuck. So, does iMovie actually do anything at all besides suck up space on my drive? If so, you couldn't prove it by me.
<Edited out by the Hosts>

MPEG Streamline has a mass of options to choose from when converting video formats - which unless you have some pointers, can produce some very ******* language.
So here are a few snippets of information I've learned from a few other users and claim no credit for the advice, well except to say thank you to the original posters for their help and assistance.
So here goes...
In order for you to be able to import your DVD footage into iMovie 08 you need to change the format of the video files.
I use MPEG Streamclip which is a free download from http://www.squared5.com/ to convert the video.
Once you have downloaded the software and installed it, pop your DVD into your iMac, open up Streamclip, then click FILE > OPEN DVD > Select the DVD from the Devices. You should see VIDEO_TS but ignore this, simply click on SELECT, then select from the drop-down list which track on your DVD you wish to open and click on Select.
After a few seconds the video should open in a new window. If you see 'Warning, the stream may have timecode breaks', click 'FIX NOW', the next page opens, make sure that 'DO NOT SKIP ANY FRAME' is ticked and click 'PROCEED'.
Wait until the video is processed and the opened page shows the video.
Now click on FILE > EXPORT TO QUICKTIME, select compression 'APPLE DV - PAL' from the dropdown menu, and move the quality bar to 100%. Click on 'Make movie'.
From the next page rename the video footage to something more memorable, and save it to th Desktop or somewhere else NOT the DVD which it defaults to - if you forget it will fail!!!
You can now import this video footage into iMovie 08 using the FILE >IMPORT MOVIES from within iMovie 08
Sailingmaster, I hope this helps you out with making a DVD for your daughter's upcoming wedding, and note, I've been using iMovie 08 for approx two months now, and find it extremely intuitive to use.

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