Intel is wacked on iMovie..HELP

Here is a picture of the problem I am having.
http://static.flickr.com/25/97391677bfc8585358o.jpg
When I import mp4 files to iMovie I get a copy of it in the upper left corner of my desktop?
I went to apple store and they said I needed more Ram which I have and you see the results.
So far I am way not liking this psuedo Mac...grrrrrrrr.
Any ideas I think I have a lemon?
Oh and I have no programs on the computer than what shipped with it.
1.83 GHz Intel Core Duo 1 GB DD2 SDRAM   Mac OS X (10.4.4)   17 inch

I have found the problem.
It was the memory as I had a Centon 512 memory in my mac and it was the problem.
Once I put the memory I bought from the apple store this problem was solved.
BUT the thing that gets me is ALL the intel macs in the apple store had 1 gig of memory.
So the problem I had was still there with the 512 MB that ships with the intel mac which is obvious not enough to do iMovie.
Why do they sell the intel mac without enough memory to work with the software that is standard really *****!
So if you buy this intel mac you have to get another 512 MB of ram to even use it so add another 100 bucks to the price.
1.83 GHz Intel Core Duo 1 GB DD2 SDRAM Mac OS X (10.4.4) 17 inch

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