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to answer my own question... my imovie file was just to large a file. I split it inot to separate files and editing is back to normal.

No, the tracks are extracted already - before i extracted them it worked fine. Now the audio plays but the video stutters and even stops for seconds at a time. Once i delete the audio tracks it plays smoothly.... is there a way to flatten the audio track back into the video?

I have the exact problem - remove audio and it runs fine... with audio it stutters and is impossible to work with. Running all latest updates 1.67 powerbook 2gig ram... any ideas???