Who is processing ZS3 AVCHD lite with iMovie '09?

I've got iMovie '09 (v8.03) installed along with updated versions of the OS (version 10.5.7) and Quicktime Player (version 7.6.2). The Panasonic Lumix DMC ZS3 is detected on the USB bus of the iMac so at least that part works, but when I try an "import from Camera" only the built-in sight is present even after a reset (option, command, p & r being pushed simutaneously after disconnecting and reconnecting the power and rebooting - relinguishing after the second beep).
Is anyone here using iMovie '09 with ZS3 AVCHD lite successfully.
Are you able to see the ZS3 as an additional camera when trying to import from the camera?
How were you able to import?
Please advise.
Thanks,
beaucamera

Before I buy the ZS3, I must be sure I will be able to work with the video clips. I have read
this thread, and various reviews. I am used to importing from my Canon using iPhoto. The video clips arrive there along with the stills. Simple! Then I move the clips into iMovie and start editing. So now it sounds like iMovie will import the clips instead. Can they
then be moved to iPhoto for storage? As separate clips? And what about the stills?...when you
plug in the camera, does iPhoto open as well, to import those? Is the ZS3 video problem eliminated if one sets the Zs3 to mpeg instead of avchd, and sacrifices some memory and quality? I really want the ZS3, but I am badly intimidated by the AVCHD/double-speed/hiding-on-the-card/worse-on-a-Mac problem. A lot of people who are obviously much more tech-savvy than I am have posts on the
internet describing their struggles with this. Does anyone know of a link to a place where, step-by-step, someone lays out what I would be dealing with? Thank you. Robert

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    Message was edited by: AndrewSmith

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