So i decided to hookup my gaming console to my 20" iMac, just to see if it could be done. I had a "hollywood dazzle DV bridge" lying around, and i had already used it to convert some VHS tapes ages ago using iMovie.
But this time, i wanted to just run a video and audio stream via FireWire into my Mac, and watch it in full screen. After spending a good hour looking for that option in iMovie i gave up. Did a quick search online and found "Vidi", it's free, it's relatively straight forward, you can watch the video full screen and you can use it to import video into a dv file.
Just thought i'd share it with you guys, in case anyone is trying to do the same and needed to find the software to do it.
Vidi 0.4.7 software download - Mac OS X - VersionTracker
Cheers