Try hitting the Enter key on your keyboard to render the clip.
By the way, did you select an AVCHD project preset at the start up screen.
Having clicked on 'Get Media', I selected 'AVCHD or other hard disk / memory camcorder'. Is that the same thing as selectind AVCHD for project preset at the start up screen?
I tried clicking the Enter key on my keyboard when viewing the video but it didn't do anything ??
Sounds like you dont have the correct project preset then, when you open PE7 you come to the start up screen, select New Project, then at the bottom of the window select Change Settings... here you will find the project presets. Select an AVCHD project preset that matches the AVCHD from your camcorder... stereo or 5.1 audio, 1920x1080 ("full") or 1440x1080.
Once the video is on the timeline (not while playing), hit the Enter key... this will render the video. The red line above the video will turn green and it will play back smoothly. If you processor is fast enough you may not need to render.
Thanks Paul. This worked.
I've ordered some tutorial videos for PE7 which I'm obviously going to need by the look of things!
In the meantime, your advice has helped, so thanks again.