Why don't my AVCHD clips load to the Video 1 track?

If you're using AVCHD video with 5.1 audio in a Premiere Elements 7 project that is not set up with 5.1 audio, the video will load to the Video 4 track rather than Video 1.

In Sceneline mode, the video won't even appear in the sceneline (because it is not loading to Video 1).

The solution is to create a project using the correct presets for your AVCHD audio, as illustrated below.