Hi,
Good question. From experience, like you with Firewire when you plug in the firewire cable it just works. That's because iMovie uses the Firewire protocol from the camera etc.
With a USB, like my Ixus Camera I have to import my images (AVI's) through iPhoto first.
I would suggest if you can get your friends camera to try the following:
Open iPhoto, then connect up the USB cable and see if it recognizes the camera. If it does do an import of images, then open up iMovie 06 and see if you can drag them into the project.
I say iMovie 06 as I believe from the chatter on the web that this functionality is missing iMovie 08??
Let me know how you get on.
Rgds
Gday


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