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Trying to use imovie but it won't recognize clips downloaded on usb (file format .avi then converted to .mov) - any help greatly appreciated. Thanks!

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Depending on the version of iMovie and your OS, you may require an additional codec for quicktime to understand. Check out meg StreamClip. That may help. direct download from apple.

Another video converter you can use is iSkysoft. Good tutorial here:
How to import video files such as WMV, AVI, M2TS to iMovie - convert videos to iMovie

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