IMovie Never Finishes Optimizing on Import?

So, I am attempting to import a bunch of .MPG files that I had copied to my desktop from a Sony Handycam, into iMovie. This is a project I'm going to be working with in class at my school. Also, another note: I never had this issue when using Mac OS X v10.7.x (Lion).
Now, at first I just let the "Optimize Video" stay checked, as I figured default import settings would be best. But as it never progressed, and never finished, I had to force quit iMovie, and I then tried again, this time with the "Optimize Video" unchecked. This did unfortunately not make any difference.
Could anyone help me figure out a solution to this problem? I really need iMovie for this project.
Thank you in advance!

I'm having a problem encoding a Quicktime MPEG-4
movie from a 1 hour DV project. iMovie never
finishes even after leaving it running overnight.
After 10 hours of processing, iMovie still says it
needs over 1500 minutes to complete. This is the
same estimate when I left it the night before.
I have been successful converting other 1 hour DV
movies to Quicktime MPEG-4 using the same process.
Typically, this involves restarting my iBook G4
1.42GHz 1GB so no other apps are still running.
The project I'm trying to convert is a 15.5GB file.
I have 12.5GB of free disk space on my 60GB drive.
I am able to send this problem project to iDVD to
create a DVD for playback in a standalone DVD
player.
Any tips on how to get this encoding to finish?
iBook G4 1.42GHz 1GB
memory 60GB hdd   Mac OS X (10.4.3)  
iMovie 5.0.2 (111)
Your problem may be from a lack of adequate ram. If you don't have enough memory ram to process your project, it will continue to attempt to run. You may also get error messages stating that your project is too big and may not be able to burn it to DVD. Or, you may not have the right operating system. Depending on which OS you have, may create problems. I too experienced the same problems you have. Also, if you recently upgraded your OS, you may need to update your system firmware, if you haven't already done so. Installing new system software doesn't automatically update your systems firmware, you need to go to Tech Support, or do a search on apples support site, for the latest firmware updates. Once you've found your firmware updates, download and install it to your computer and click update if your computer asks if you want to do this. Hope this helps.
Froglips

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