iMovie '08 (7.x) has the ability to import more file formats than earlier versions and should have no problems with movies created by Snapz Pro X 2.
However, earlier versions of iMovie had to convert .mov files to a DV format when importing.
DV - Digital Video - is the format digital video cameras use, and is the native format for iMovie. When a .mov file is converted to DV, it will degrade in video quality. It is similar to a 72 dpi image that looks great on screen, but looks terrible when printed.
It is not a problem with Snapz Pro X 2 but is caused by the conversion from one format to another.
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