Is iMovie 08 compatible with AVI files?

I just got a Nikon D300s with the built in video and when I import the video from Finder to iMovie I don't get anything in the preview window. Am I doing something wrong or is this format not supported?
I just upgraded to QuickTime Pro so I can save the AVI files as QuickTime files. Do you think that will solve the problem?

AVI is a container, not a codec. It is an ancient unsupported format, but there is a lot still out there.
Similarly, MOV is a container, not a codec.
You need to figure out what audio and video codecs are included in the AVI container, and then if they are compatible with iMovie, putting them in an MOV container would probably be sufficient. If they are not compatible, you will need to convert them.
If you AVI files will open in QT Pro or QT Player, click WINDOW/INSPECTOR and see what is listed next to FORMAT:. These would be the codecs.
In general, iMovie can import DV, Apple Intermediate Codec, Apple Animation Codec, h.264, MPEG4, HDV, and several others. AVCHD is converted to Apple Intermediate Codec on import.
MPEG2, for example, must be converted to one of the supported codecs before import, like Apple INtermediate Codec.

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Is iMovie 08 compatible with AVI files?

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