In my current iMovie project clips now cannot be dragged from an event to the project. They play fine in the event but when dragged to the project they go blank. - even clips I have already used with no problems!

Clips go blank when I drag them from an event to the project itself. The clips are still intact in the event.
I have tested creating a new project and different clips but the error recurs - now I can't add anyclips at all to any projects,
Has anyone got a solution to this problem please?

Trashing iMovie's preference file may fix this problem.
Go to your Home folder <your user name>/Library/Preferences (not the Library folder at the top level in Macintosh HD). Similar to Lion, on Mountain Lion (10.8.3), the Home Library folder will be hidden (unlike pre-Lion OS X versions). To access it, click and hold down Go in the Finder menu bar, then press and hold down the Option key - the Library folder will appear in the drop down list. Slide the pointer down to highlight the Library. As you release the mouse button the Library folder will open.
In the Library/Preferences folder, locate a file named "com.apple.iMovieApp.plist". With iMovie closed, drag this file to the Desktop. When next opened, iMovie will create a fresh preference file with the default settings (you can change these settings in the menu item "IMovie>Preferences" if desired). Also, it's now safe to drag the old preference file to the Trash. Trashing the file will not harm your existing Events or Projects.
Note that these instructions apply to iMovie '11, which you are using. For those on iMovie '09 the preference file is named "com.apple.iMovie8.plist". Earlier versions have a similar name.
John

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