How can I seperate soundtrack from movie footage in iMovieHD?

I have footage of a concert captured on miniDV cassette with my Sony DVR-HC40E, and I wish to seperate the soundtrack from the image footage.
At certain points in the movie, there is camera-shake which I want to edit out (and substitute still images at those points) while maintaining the sound-track.
Is this possible, and if so how? (the 'extract audio' command in the advanced menu is greyed out).
Also there is a very slight time lag between image and sound giving lip-synch diparity, so seperating out the sound and image tracks would be useful to solve this problem.
In the timeline viewer only one track shows both image and sound.
The format of the movie is:
DV-PAL, 720 x 576, millions
DV, Stereo, 32.000kHz
DV, Stereo, 48.000kHz
25 FPS
Any suggestions much appreciated
PowerBook G4 17 1.67 gHz 512Mb/100Gb   Mac OS X (10.4.3)  

Arcadian,
I'm sure you've already done this, but just to make sure: Be certain that you have selected (clicked on) the video clip of choice when it is down in the timeline below the video window. Then try to "Extract" audio. You can't do this unless you have clicked on (chosen) the video clip that you want to mess with and the video clip of choice has been moved from the clip bin to the timeline. I know you've done this, but sometimes the simple things are the culprits.

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