Screen Recording and Edit in iMovie

Alright, I record my screen with Quicktime X and when I import it into iMovie I click full quality but when I place it in the timeline it cuts off the dock and menu bar and makes the video horrendously terrible compared to the original HD file. I am using iMovie 09 and I was wondering if I can get it to be full screen and have full quality so I can edit it and add titles.

You need to convert the VOB files back to DV which iMovie is designed to handle. For that you need mpegStreamclip:
http://www.apple.com/downloads/macosx/video/mpegstreamclip.html
which is free, but you must also have the Apple mpeg2 plugin :
http://www.apple.com/quicktime/mpeg2/
which is a mere $20.
Another possibility is to use DVDxDV:
http://www.dvdxdv.com/NewFolderLookSite/Products/DVDxDV.overview.htm
which costs $25.
Obviously the foregoing only applies to DVDs you have made yourself, or other home-made DVDs that have been given to you. It will NOT work on copy-protected commercial DVDs, which in any case would be illegal.
But this is not the best way to convert VHS tapes for editing in iMovie before making a DVD. You will experience considerable quality loss doing it that way, as the format of a DVD is mpeg2 which is highly compressed and not intended for further editing.
It would be far better to import the the video directly from a VHS player into iMovie via an analogue to digital converter such as, for example, a Canopus ADVC110, which can convert the VHS analogue format directly to a digital DV stream that iMovie wants.
I have done it this way for at least 35 VHS tapes (old family movies) with minimal quality loss - dependant on the quality of the original tape.

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