Version 3.5 vs. 4.0 & using .avi with either

I've heard from numerous sources that people think Final Cut 3.5 HD is actually better than the newest version. From anyone's experience is this true, and can you give me reasons why? It's going for around $80-100 on Ebay, and I want to know if that sounds worth it.
Second of all, the only camcorder I have records in .avi type files, which aren't the most desirable I know, but they do work just fine for using on Imovie, and I'm wondering if I bought either version of the software, would my camera still be compatible with Final Cut Express? Or does it ONLY work with mini DV type cameras?
Any help at all would be appreciated!

+" ... people think Final Cut 3.5 HD is actually better than the newest version ..."+
Just the reverse. FCE 4 is more recent code, is the only version supported on Snow Leopard, and has some additional features that FCE 3.5 did not have. Among other things, it supports DV, HDV and AVCHD camcorders.
Besides that, FCE 3.5 included additional apps SoundTrack and LiveType. FCE 4 includes LiveType but not SoundTrack. Not much of a loss, as SoundTrack was not particularly useful with FCE, for technical & workflow reasons.
Regarding AVI video files, you will need to convert them to QuickTime in order to use them with FCE. Download MPEG Streamclip - it's a great conversion tool, and free.

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