Search in the Premiere Elements forum. There are a lot of questions about Flip cameras and maybe you have to get PE to edit, but PR does not.
I can add one of the movie trailers from http://www.h264info.com/clips.html to a CS3 sequence and it's the same format and codec as the FLIP: 1280x720 H.264 with AAC audio in an .mp4 wrapper.
Maybe you could test one of the trailers?
Here is one of the ARTICLES that Harm mentions, from the PrE Tips & Tricks sub-forum.
There is also a very recent post to this forum on using the Flip material. I think that I, Jeff and probably Harm commented in that one. You can filter your Seach by People and use any one of us. I'd start with Jeff Bellune and look for the more recent dates.
The codec is definately not h.264. I analyzed it and it reports as XViD. The extension is AVI.
What I ended up doing is converting it using Super ©, a free utility that I'd almost forgotten about. I converted the clips to MPEG2 and was finally able to import them, with some loss of quality.
xvid and mpeg are BOTH compressed formats, designed for viewing and not editing... although, from a flip, you are not going to get great quality anyway
Interesting. It seems that there are Flips, and then there are Flips. Same for the Creative Vados, where one also uses Xvid.
Conversion is the only hope and glad that Super worked for you. Thanks for reporting.
Only a FYI (don't know about Xvid, DivX, and such, but...):
Since Photoshop Extended (in my case CS3) started to support video, I have always tried to open odd formats in PS to see if I can do a conversion there to something PPro likes. In many cases it have been quite successful.