AVCHD footage is highly compressed using a GOP compression scheme. This makes it unsuitable for heavy processing and subject to all kinds of errors and artifacts when re-compressed. The best workflow is to convert (transcode) your AVCHD footage to a lossless or nearly lossless codec that preferably uses YUV color space. I work mostly on a Mac so my preference is Apple ProRez 444. I transcode everything that I work on that is going to require more than just straight cuts.
Try transcoding (Adobe Media Encoder or Compressor or even Quick Time Pro are a few of the options) your problematic clip, replace the AVCHD footage in your AE comp with the transcoded footage, then re-render to a lossless or nearly lossless codec. Bring your new render into PPro and render a preview. Let us know if this fixes your problem.
So I don't lose quality, would an uncompressed AVI 1920x1080 work? The last thing I want is to have a weird change in resolution or quality from one clip to this one.
And if it helps, I'll clarify that I am using a dynamic link when using Premiere Pro and After Effects. So that's one reason why I've been so confused. I would have both programs opened. AE would render the file fine and play smoothly once rendered, but not in Premiere Pro.
I followed your advice and converted it. I did so to a an AVI 1920x1080 at maximum depth. Thankfully it kept same quality and resolution and no hiccups. Thanks again!!!