imovie09not working with Elgato H.264

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Apr 27, 2010
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I am trying to bring in VHS tapes into imovie09 using Elgato interface. Elgato seems to make a H.264 file based on computer speed no matter how I set preferences. The H.264 file works fine expect that I can not select Favorites, Reject, etc. If I convert the file to MPEG-4 it works.

Does imovie09's selection tool work with H.264 files, or is it something about the Elgato files? Has anyone used H.264 files and had the select option work?
 

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