Updated: iMovie 8.0.5 out..Apple introduces new iFrame video format

iMovie 8.0.5 is out with a surprising new video format twist:

Dubbed iFrame, the new video format is based on industry standard technologies like H.264 video and AAC audio. As expected with H.264, iFrame produces much smaller file sizes than traditional video formats, while maintaining its high-quality video. Of course, the smaller file size increases import speed and helps with editing video files.

The first cameras  that support this new format are the high-end Dual Cameras, the $550 VPC-HD2000A and the $499 VPC-FH1A from Sanyo.

Update: Apple produces a KB article on the format

iMovie 8.0.5 also has the following improvements:

• Improved compatibility with importing video captured on the iPod nano
• Fixed problems with resizing the iMovie window during playback
• The update is recommended for all users of iMovie ’09.