Visual artifacts with IMovie11 after moving to Lion

Hi, I have recently moved to Lion and created a new IMovie11 project, but now the project videos are complete with visual artifacts ( vertical lines ) they are also shown in the exported movie:
I haven't experienced this before as I did few movies with IMovie and it worked well.
The initial video is shot with Canon 5D Mark II at 1080p 25fps, the project is also set to 25 fps:
Uploaded with ImageShack.us
Any help, thanks.

Here's the specs for the MBP.
I'll have to wait till I get home to post details on the macbook.
Cheers everyone.
Chipset Model:          Intel HD Graphics
Type:          GPU
Bus:          Built-In
VRAM (Total):          288 MB
Vendor:          Intel (0x8086)
Device ID:          0x0046
Revision ID:          0x0012
gMux Version:          1.9.21
Displays:
Display Connector:
Status:          No Display Connected
NVIDIA GeForce GT 330M:
Chipset Model:          NVIDIA GeForce GT 330M
Type:          GPU
Bus:          PCIe
PCIe Lane Width:          x16
VRAM (Total):          256 MB
Vendor:          NVIDIA (0x10de)
Device ID:          0x0a29
Revision ID:          0x00a2
ROM Revision:          3560
gMux Version:          1.9.21
Displays:
Color LCD:
Resolution:          1440 x 900
Pixel Depth:          32-Bit Color (ARGB8888)
Main Display:          Yes
Mirror:          Off
Online:          Yes
Built-In:          Yes
Display Connector:
Status:          No Display Connected

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Visual artifacts with IMovie11 after moving to Lion

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