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I'd do a Google search on XD Cam Workflow. You'll come up with a bunch of articles.
You might also want to look at this Adobe Article.
I wouldn't re-compress anything without checking out the recommended workflows. I would avoid MPEG re-compression at all costs. It's not good for production.
As Rick suggested, do a search. Most of these issues hinge on specific file structures, use of audio tracks and meta data and can be resolved one way or the other. Apparently the most reliable would be to upgrade to CS4, but let's not do Adobe's marketing here ;-).
Rick I can't find a single reference to AfterEffects in that article.
While I would like to avoid MPEG recompression, the attendant issues with working with uncompressed HD footage (several hours of it in total for this project) is a disc management disaster.
Mylenium, we're looking at CS4 with interest, but waiting for the bug fixes/patches to settle various issues discussed in these forums before we commit to a new version. Right now there are several show-stoppers which prevent us from going with CS4 (one of them being backward compatibility).
The real issue for this situation is why AE fails to import clips randomly displaying Media Pending instead of the clip.
I don't know of any reason why the indexing of those files would fail. When reading MPEG2 files AE needs to pre-process it to support random access. You could try deleting the index and trying to import it again.
These directions should work for CS3.
If that doesn't work, try and call support, they have a larger database than I have.
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