Is iMovie's stabilization feature broken?

Hey guys new here, I did a few searches but didn't see anything in the past few years representing my problem.
I just bought a Macbook Pro Retina and installed the newest update of OS X Yosemite and iMovie.
I got some videos recorded on my iPhone 5S imported to iPhoto.
I have tried multiple times starting a new project, importing a new iPhone video from the iPhoto library, and then applying the image stabilization. It never stabilizes the video, just leaves that circle "thinking/working" indicator and never finishes the process. Same thing happens for Fix Rolling Stutter.
I have tried already:
Videos in different formats and from different devices (Just using iPhone in example because those are the specific videos I am trying to work with)
Uninstalling and reinstalling iMovie
Checking for updates
Trying to edit different length clips (0.5 sec clips to see if it was just taking a long time)
Opening new projects with fresh videos
How it shows in my screenshot there is how it acts, just shows that forever. I can uncheck the box and it goes away, but it won't stabilize my videos.
Any ideas?
Thanks!

I'm assuming you are using iMovie 10 (?).  In iMovie 10 you can only stabilize a clip by selecting it in the timeline, not in the event pane.
I'm afreaid your screen shot doesn't display - you need to use the camera option (camera icon in top of posting window).
Geoff.

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