Using iMove HD to capture in Mpeg-4 format

I have iMovie HD 5.0.2 and was wondering if there is anyway for me to capture video that is saved directly in Mpeg-4 format instead of as a DV clip. I noticed that when you start a new project in iMovie HD, you can select between the ff video formats: DV, HD, Mpeg-4 and iSight. So I assumed that if I select Mpeg-4, than it would capture my video footage from my DV cam (a sonypc350) as Mpeg-4. But it doesn't. It still caputers it as a DV clip. So is there anyway that I can capture in Mpeg-4 format using iMovie HD. My DV cam has analog to digital pass through and I'm trying to figure out a way to create a make-shift TiVo kinda system with the tools I have available.

...a way to capture directly into compressed Mpeg-4 format because DV clips take up a lot of hard drive space. ...
Nope.
iM's internal file format/compressor is dv, any other will/has to be converted...
besides:
mp4 is a lossy codec - you will never get the pic quality as dv...-
video editing is a disk drive consuming process - no workaround.
sorry to say that (owner of ~0,7TB of HD… )

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    Hi
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    Your iMovie clips are probably in DV Stream format, which is basically raw data straight from the camcorder. Here's some info:
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    You should probably go back into iMovie and export them properly, either to DVD or to QuickTime. If possible, choose a pretty high bit rate so you don't lose quality.
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