Image quality using iMovie 08 vs Final Cut Pro

I read in November's Macworld that if I use a tapeless camcorder, "you won't get the best image quality if you use iMovie '08 because the software converts each movie clip to smaller, more manageable size. To get the highest quality you'll need to be running Final Cut Pro on a Mac Pro with at least 2GB of RAM." Do you all agree with this? And if so, please consider the following. I used a mini DV camcorder to transfer all my tapes to my computer and to an external hard drive. Have I already lost that image quality in doing so using iMovie? If so, can Final Cut Pro import from iMovie and improve that quality by decompressing or will I need to retransfer the tapes using Final Cut Pro or will the difference be too negligible to be noticed and not to bother. Thanks, SWestD

I read in November's Macworld that if I use a tapeless camcorder, "you won't get the best image quality if you use iMovie '08 because the software converts each movie clip to smaller, more manageable size. To get the highest quality you'll need to be running Final Cut Pro on a Mac Pro with at least 2GB of RAM." Do you all agree with this?
It depends on the format. In general, the consumer tapeless cameras shoot some highly compressed variant of the mpeg2 or mpeg4 format (delivery formats). These formats are not designed to be edited but rather to be displayed directly from the camera to the TV. In order to edit the material, you must first convert the files from their delivery format to something editiable. This conversion usually results in LARGER not smaller files. There is the potential for some minimal alteration of the image in the transcoding process. This is the trade-off for shooting with such a compressed format.
And if so, please consider the following. I used a mini DV camcorder to transfer all my tapes to my computer and to an external hard drive. Have I already lost that image quality in doing so using iMovie?
No, capturing DV material from tapes using iMovie is a direct digital transfer. DV/NTSC or DV/PAL video as captured from tape is the muxed (mixed audio and video) DV stream. It is an exact replica of what is on the tape.
If so, can Final Cut Pro import from iMovie and improve that quality by decompressing or will I need to retransfer the tapes using Final Cut Pro or will the difference be too negligible to be noticed and not to bother.
FCE and FCP capture material from tapes slightly differently than iMovie. While iMovie brings the material from the tape unaltered, FCE/FCP uses Quicktime during capture to pull the audio and video into separate streams with in the resulting file. By having the audio demuxed, the programs are able to edit multiple video streams simultaneously while iMovie is limited on one at a time. The video quality is not altered in this demuxing process.
If you choose to shoot with a tapeless camera and edit the material in FCE or FCP, FCP has a wider range of formats that can be handled by the program, but in no way will it deal with them all. Many still need to be converted into an edit friendly format before you bring them into the program.
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