So I just got a Sanyo Xacti HD1010.
Im trying to edit a clip with Premiere Pro CS3. I use the HDV preset for 30p(60i) I input the footage, but onc eit renders it goes all whcky?
Alas CS3 does not support AVCHD.
You need to convert the files with UpShift from VASTT or NeoScene from Cineform or upgrade to CS4.
When upgraded will the video files play smoother etc?
That will depend on your pc. You need a pretty good machine to get smooth playback or decent export.
Minimum is a QuadCore but an i7 is even better.