Using iMovie 4 files in iMovie 5

My old home movies were deteriorating so I imported them into iMovie 4 and I now have a 500 GB collection of old and somewhat disorganized movies. iMovie 5 has the ability to cut and paste between projects which would be very helpful, so I upgraded to iMovie 5.0. Now I read that projects should be completed with the original program.
What are the problems associated with using iMovie 5.0 on 4.0 projects?
G5   Mac OS X (10.4.3)  

The conversion from iMovie 4 to iMovie HD is usually successful, but it can encounter problems if the iMovie 4 project had features not supported by iMovie HD. If iMovie 4 clips were made by certain third-party iMovie plug-ins, for example, I can imagine that might cause problems.
If your iMovie 4 projects contain only unedited video clips, there should be no problems. Nonetheless, always make a backup before converting any project.
Tip: do a Save As after converting the iMovie 4 project to iMovie HD. That creates a true iMovie HD project, avoiding user issues often encountered with converted projects.
(Save As creates a true iMovie HD package, not the hybrid folder created when converting. It's too easy to get inside the hybrid, open the wrong project file, and mess up the project pretty badly.)
Karl

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