Here is a workaround:
Download the free Microsoft Expression Encoder 4, and use it to transcode the video using VC-1 codec. Now you can import the VC-1 footage into Adobe and it will work without choppiness.
Not happy about all this back and forth transcoding, but good enough for my needs.
The default render settings in the output module is eight bit lossless which will not play back in real time. You need to study up on rendering. The default render settings in the output module is 48 that lossless which will not play back in real time. You need to study up on rendering. If you have a modern version you should be using the Adobe media encoder it to render your final output. Check out the rendering section of this set of tutorials: Basic Workflow
The problem is with Import, not with Export.
Adobe incorrectly reads footage compressed with Microsoft Video 1 codec. The workaround is to transcode Microsoft Video 1 into something else (such as VC-1) using non-Adobe transcoder, before importing footage to Adobe.