IMovie and Sony camera can connect, but nothing imports

My iMovie and Sony HD camera can connect fine...I can control my camera from imovie, but when i click import, it plays (plays on camera and timer on imovie starts) but the screen remains blue and no video is actually imported.

Did you try Sue's excellent suggestion of the Garage band trick anyway?
Also, try deleting iMovie's preference file...the plist found in YourUserName->Library->preferences->com.apple.iMovieplist. Close iMovie, trash the plist. iMovie will create another one when you launch iMovie again.
Do you have the camcorder plugged directly into your computer's Firewire port? Some camcorders don't work properly if they are connected into another device. And, just to be sure, you do have the camcorder set to VTR, right?

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