Installed iMovie 7.1 projects won't play/event clips will play-no volume

I just installed the iMovie 7.1 (506) update, and now I can't use the software at all.
1. My PROJECTS will not play at all. I can click on a clip and expand it (like I'm going to trim it), and play it from there... but I get no volume.
2. In the EVENTS window my clips will play, but I get no volume.
3. Even the iTunes music I put in the background on my projects won't play, so the sound issue is obviously not related to the clips.
Before I installed this new update, everything was working fine!
I've had nothing but problems since I bought iLife08 and installed iMovie. It's just not working. The previous update fixed all my problems (from the software out of the box), but I had to re-enter all the clips into new projects. Now this new update I did tonight has set me back again. This is costing me time. I've been trying to edit my trip to Europe... and this software is just not working.
HELP!!!!
Apple if you are reading these posts... your new update has problems! PLEASE FIX IT ASAP!
Also can you put a bug report on this software so I can let the developers know there is a problem.

Did you also install the iLife Support 8.1 upgrade? That upgrade is required, according to the iMovie 7.1 upgrade page.
http://www.apple.com/support/downloads/ilifesupport81.html
Where it says this about iLife Support 8.1:
What’s New in this Version
This update supports system software components shared by all iLife ’08 applications, improves overall stability, addresses a number of other minor issues, and supports general compatibility issues. It is recommended for all users of iLife ’08.
Karl

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