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I agree that a big graphics card won't offer much, when working with AVCHD. It's just a very large, highly-compressed video file, and it takes a good processor (probably a quad core) and lots of RAM to work with it. And even then...
So, for a video card, have a look at our recommended specs in the FAQs at the top of this forum.
Look at the specs labeled "Even Better" at the bottom. A 128 meg GPU card would really be about all I'd go for.
Although PE7 does not utilize the video cards GPU for AVCHD editing other programs that you might use may. For example I use Cyberlink PowerDVD for playing back my AVCHD files/discs... Cyberlink uses the Video cards GPU to take the load off the CPU.... bringing the CPU usage down from 60% to less than 5%. Cyberlink will work with Nvida or ATI cards, dependant on model.
One other consideration might come into play, should Adobe add CUDA to PE, like they have done with PS and PP (to some degree). There *may* come a time in the near future when GPU
play a larger roll, just not yet with PE.
Were I only using PE and needing to replace a card, I'd go mid-level to keep the costs down, and wait until more GPU horsepower could be used. Then, I'd buy whatever was best at that time.
Also, as Paul LS states, weight other programs that might benefit from a more powerful video card. If you do any real 3D, that would be a good reason to add more power/VRAM.