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You can't capture a media stream from AVCHD (or any hard drive camcorder) the way you can from a miniDV camcorder, Scott. But, if you click on the AVCHD option under Get Media, this should launch the Media Downloader, which you can use to download the video from the camcorder, as you would if you brought it in from the PC Files and Folders option.
As Steve said there is an option for capturing AVCHD streams by klicking on the specified icon for AVCHD which would launch Media Downloader. Also to add here in case you are using a DVD based AVCHD camcorder, you will have to install the software that comes along with the camcorder and then Premiere Elements would recog. it.
Have you been able to get the canon working? I was thinking of getting the HF10 but wasn't sure if there would be a lot of problems getting it to work with the premiere elements that came with my new dell.
Actually, the path you suggest here doesn't work. When I launch the Media Downloader it doesn't recognize the drive that contains the AVCHD content. That drive is recognized by Windows--I can browse to it and pull off the files through explorer. But that drive is not seen in the Media Downloader.
This is only a minor quirk. I am able to get to the content both through Windows and by using the generic "get media from file or folder" option in Premiere. But that isn't as slick as the AVCHD browsing I was able to do with my older camera. But it's still possible to get the content and I love the camera, so don't be overly concerned about this.