Standard definition, DV format, video. Using the above process and some modifications (page references are to the camcorder's manual):
Camcorder off and plugged into the AC power adapter (Page 12).
Connect the Mac's 9-pin Firewire 800 port to the camcorder's 4-pin DV port (Page 72 - see Note 1, below). Example cable: http://www.frys.com/product/4529177
If the computer was off, turn it on.
When at a stable desktop, power the camcorder up (Page 73 - the Power switch) and put the camcorder into VCR mode.
Rewind the tape (Page 74 - REW button), if needed.
Launch iMovie and select "Import from camera" from within iMovie (under "File").
Note 1: Firewire, DV, i.Link and IEEE1394 are all the same thing.
Assuming you have available internal hard drive space, this standard def video is OK in the start up drive - but at 14 gig per 60 minutes imported, just a heads-up. The imported video files are stored in the Macintosh HD: Users: (your directory): Movies: iMovie Events directory. The other directory of interest is the iMovie Projects directory.
If you choose to move the video file project storage to an external drive, quit iMovie, create a "Movies" folder in the external drive, copy the iMovie Events and iMovie Projects folders and their contents to the "Movies" folder you just created in the external drive, then trash the iMovie Events and iMovie Projects folders in the start-up drive.
Usually, when you launch iMovie, it starts with the last project that was worked on. The first time you start iMovie after moving the files to the external drive, it is likely iMovie won't know where the files went and start up a new project. Rather than launch iMovie directly, go to the external drive, open the Movies: iMovie Projects folder and double click on the project you want to work on. This should launch iMovie with *that* project and show iMovie where the iMovie Events directory is so that the project files correctly appear in the iMovie library. Also, any newly imported video *should* now import to the external drive when imported under this project.
I know - it is confusing. Once you do it, it is not a big deal. Experimenting is good... For example, import only a few minutes of video rather than the entire first tape, hit stop on the camcorder, iMovie will think the end of the tape was reached, acknowledge that, quit iMovie, copy the directories and files to the external drive, trash the files from the start up drive, double click the Project file in the external drive to be sure it is all working - then continue the import and be sure the video is importing to the right place. This way you need only copy a small amount to set up the iMovie project file storage path rather than a huge amount...
taking a breath...