You maybe a bit under powered for 60i avchd
What are your drive set ups?
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The CUDA processing features of Premiere Pro CS5 accelerate a few things:
- several effects
- blending modes
Unless you're using one of the accelerated features, you're not going to see a difference in speed or GPU usage.
2 SATA Drives. One with video content on it. Non Raid.
Given Todd's answer, I'd say that Harm's answer is the one. Your Core 2 CPU just isn't powerful enough for this footage.