Firstly you take all the snapshots for your project and then you import the images in to iKITMovie.

 

To use a Digital still camera you must first take the snapshots you wish to animate as JPEG's (all modern digital still cameras can take jpegs's)and then copy them to your computer. Then you can import the captured images into iKITMovie.

Here is a video about using a Digital Still camera for you stop motion animation.
This video suggests you set your digital still camera to 640x480 but it is not necessary really. iKITMovie 1.7 or above will automatically resize your images when you import them to whatever size you choose.