> Save your iMovieTM project.
It works fine for me. This is what I do.
1) Create a new project in iMovie 3 (example "Karen's Birthday Party")
2) Edit my movie
3) Save my movie (File, Save) and quit iMovie
4) Open the iMovie folder called "Karen's Birthday Party"
5) Launch Toast and choose Video
6) Drag and drop the iMovie into Toast ("Karen's Birthday Party.mov")
7) Click Record