Any form of MPEG file is a poor choice for editing or compositing work. I'd strongly suggest you convert the file to a more appropriate codec: uncompressed, Quicktime Animation, even DV. The software provided with your camera may have a conversion tool included.
As Andrew said: Use the conversion options in the bundled software. The camera uses MPEG-II transport streams, possibly with long-GOP extensions, which is simply *yuck* for any editing. It needs at least be converted to a proper MPEG-II file with a predictable GOP scheme or even I-frame only so Premiere and AE can make sense of it. If the software CD provides a specific CoDec, you may be able to load the file as an AVI. Will be slow as hog as it relies on Windows' own components, but might at least avoid the artifacting.