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Yes, with a caveat. Some users report issues doing so in the CS4 forum. General wisdom is finish current projects in the same software version, and start new ones in the new version.
I'll report an issue, just to try to thwart you from killing your productivity :) I've had a LOT of problems with broken effects and transitions when transferring a project from CS3 to CS4. I believe the transitions issue has to do with the fact that Adobe has changed how pixel aspect ratio is represented now, across all the apps. Removing and replacing transitions fixes the issue, but this could be tedious. The effects issue I think steps from the fact that they've obviously tweaked the effect interface and architecture in the program--effects work if you replace them, but those grandfathered from CS3 sometimes act a little weird.
All told, it's just not worth the headache. Finish your project(s) in CS3, an then start anew in CS4.
ahhh, but what if i have a film ive edited, say 20 mins in CS3 and i want to bring it into CS4 because it offers export as OMF which CS3 doesnt offer, basically it what my sound man wants the exported file as so he can load into pro tools to master my sound, do you know what setting it is in CS3 ??OMF is open media file...so he can basically go into it as if still on my system and much abouit with it..