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I'm afraid you're out of luck. If AE goes into the media pending loop of death, then it has no clue how to interpret the MPEG streams. If it's AVCHD, then it's no dice, if it is MPEG-II, it may be worth a spin. All this stuff is handled by MediaCore and respective plugins and if you cannot get them to run in AE, it may never work. You could try placing your PPro I/O plugin in the common MediaCore folder (Program Files/Common Files/Adobe/Common/Media Core/Plug-ins/CS3) and see if AE recognizes it, but that's pretty much it. Short of that you should look into options whether your camera software or the plugin you bought provides a way to create a quick transcode export to convert your file to a more standard conform derivative of the MPEG specs.
Thanks Mylenium for your help. I'm fairly new to dealing with all the different outputs of video. Since after buying the plug-in I am now able to edit the MPEG in Premiere, I'm wondering what would be the best encoding to export it as so I don't lose quality and bring it into AE as a different file type i.e. avi, mov? These video clips are widescreen and HD. What would be the best output for it?
Thanks again for your help.
Uncompressed and lossless files are the best way to move files to and from AE, but the file sizes will be very large.
Uncompressed Quicktime or AVI is lossless.
Try Quicktime Animation (100% quality) for lossless at slightly smaller file sizes.
To reduce file size, Quicktime PhotoJPEG at a high quality setting will provide good results, but is not truly lossless.
What I would do is look into the export settings. If there is something as a "Canopus MPEG exporter", you might have a chance. In its options, it would/ should provide an option like "quick export" "quick transcode" or "conform MPEG-II program stream". We had a test license of Edius once and while the software is crap, it had a ton of these options (something which Canopus indeed do very well), so it's likely the plugins they sell also share some of these features. If not, then you will have to export as AVI or MOV indeed. A good compromise is Quicktime with the Animation or PNG CoDecs, sometimes you may even use Photo-JPEG for not so critical stuff. If this will be your regular workflow and Sony are not going to provide updated versions of their CoDecs that may resolve the problem, you may wish to consider buying a commercial CoDec such as Sheer Video or Cineform. This would allow you to capture directly to these CoDecs in premiere and then move them to AE without any extra conversions.