Help with iMovie HD

How do you use the Overlap feature on iMove? Everytime I try it dosen't work. Is there a special thing you have to do?

Also when your converting videos to Quicktime format how do you get it full quality but in a format that isnt the .dv? Because that wont work on youtube / Vimeo.
 
press share and then ipod, then it will compress it, and you can put it on youtube or vimeo. (finder-itunes-movies-'your movie')
 
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