--- You wrote:
"This System Requirements a Macintosh computer with a G3 (or later) 300
MHz or faster processor and a built in FireWire port. Mac OS 9.0.4 or
later. QuickTime 4.1.2 or later. 64 MB RAM with virtual memory on. A CD
or DVD drive. 4 GB of available HD space recommended. Display that
supports 800 x 600 resolution and thousands of colors. FireWire 2.4 or
later. A 4-pin to 6-pin FireWire cable."
--- end of quote ---
I don't know if iMovie will run without a firewire port, but it will certainly
run without a "built in" firewire port.  Firewire pci cards can be had for as
little as $30.   USB/Firewire cardsfor $45 and up.  I think probably that's what
you are missing to get iMovie 2 to run.  You may have to install one even if you
don't use it (yet.)  It's worth it to use iMovie.

However, iMovie won't edit video imported with your i/o card unless you convert
it to DV Stream format.  Not a problem.  You can convert almost any digital
video format to DV stream by loading it into a Quicktime player and exporting it
with that specification.  However, I think you need Quicktime Pro, which is a
$30 upgrade.  They just give you a serial number which you plug in to your
current Quicktime program.  iMovie will see the files you export.

It is worth noting that video imported with most i/o cards will be vastly
inferior to DV video imported through firewire.  To use the firewire port you
need an outboard digitizer (assuming your original source is analog video.) 
These can be purchased for a few hundred dollars.  There are several low priced
DV camcorders out there, particularly the Canon line, that are inexpensive and
will digitize analog in real time and work as a great little camcorder besides. 
(I use a ZR-40, now out of production so maybe under $400 if you can find one.)

You will also probably find that your 40 gig drive will fill quickly.  There are
great deals on big drives.  I just picked up a 160 gig drive for $99 (after
rebate) at Staples.  These kinds of deals show up all the time.

I'm sorry to be telling you about how much this can all cost but if you start
small, you can do a lot and may want to slowly expand to a full system.  
Editing video and archiving stuff is very time consuming and you may find that
you'll  want to be working with an outfit that gives the best possible quality.

 I used to edit video in VHS tape and it was tedious and the results marginal. 
Today's miracle is that for comparatively little money, you can get professional
results, quickly and easily.  I can do stuff on my desk that required hundreds
of thousands of dollars worth of equipment just ten or fifteen years ago.   

Good luck.
Rich

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