It looks like another day with another update from Apple. This time, iMovie has been updated to version 8.0.5. This updates fixes some minor issues, as well as improve compatibility with the 5th generation iPod nano and some camcorders
These fixes include:
Improved compatibility with camcorders using the iFrame video format
Improved compatibility with importing video captured on the iPod nano
Fixed problems with resizing the iMovie window during playback
This update available and recommended for all users of iMovie '09, it's around 36MB, and it's available through Software Update or the Apple Support Downloads page. Thanks Mike for the tip!