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" 1280 x 720 progressive HD video scanning Thanks to highly efficient MPEG-4 technology, the HD1 is able to create high-definition videos at 1280 x 720 pixels at 30 frames per second with far higher quality when compared to conventional video cameras. These are richly detailed images that will display beautifully on any big screen TV. Choose from six different video resolution modes (and six different resolution levels for your still photos!), depending on how your images will be used.
Advanced MPEG-4 technology The HD1 features SANYO's proprietary high-definition engine to execute a vast number of calculations in a short period of time. This high-definition engine enables the Xacti HD1's advanced image processing functions such as real-time MPEG-4 compression, noise reduction and high-definition processing. Recording in the global multimedia standard MPEG-4 delivers exceptional video clarity and detail in an unbelievably portable configuration. What's more, because MPEG-4 is exceptionally efficient in the way it records digital information, higher quality videos and stills can be saved in smaller files. "
Could be the camera using some odd way to compress the files. Best bet is to use whatever software it came with. Premiere can't keep up with all these consumer camera. Hell it's having trouble dealing with footage shot from prosumer 3 grand+ cameras.
Oh....your using an HDV preset (which is Mpeg not h264). You might have to make a custom preset, that's most likely the only way you can get it to work....and it still might not.
Could you shed some light to me what custom setting may work? There is no H264 for me to choose as source input. I almost tried all reasonable combinations already.
New Sequence - Choose the 'Editing mode' to desktop then set the rest to match. The at the bottom change 'preview files' to use avi.