Read Bill Hunt on a file type as WRAPPER http://forums.adobe.com/thread/440037
What is a CODEC... a Primer http://forums.adobe.com/thread/546811
What CODEC is INSIDE that file? http://forums.adobe.com/thread/440037
Report back with the codec details of your file, use the programs below... a screen shot works well to SHOW people what you are doing
If you have a red line over the timeline after importing a video and before adding any effects... your project is wrong for your video... read above about codecs
Once you know exactly what it is you are editing, report back with that information... and your project setting, and if there is a red line above the video in the timeline, which indicates a mismatch between video and project
More information needed for someone to help... click these links and provided the requested information
For CS5 and later, the easy way to insure that your video and your project match
See 2nd post for picture of NEW ITEM process http://forums.adobe.com/thread/872666
Bandicam is not the ideal application to create videos for editing with PR. You may be better off with either of these options:
1. Use Bandicam and try to edit with a consumer application like WMM, Magix or Power Director.
2. Convert Bandicam material to something editable. Use Google to find a converter.
3. Forget about Bandicam and use another package that delivers an editable format.
Of the three formats Bandicam can output, MPEG1, Xvid and MJPEG only the last one may, just may be workable if you get the Morgan or MainConcept MJPEG codec. MPEG1 is too low a quality and Xvid will not edit because it is not intended to be edited.
AVI is completely irrelevant here, it is about the codec used within that wrapper. AVI is like a container that can hold different stuff, new TV's or other electronics, old metal waste or canned food, etc. A pro application like PR just hates metal waste and canned food. It requires high quality contents and Bandicam does not deliver that.
General warning: Do not install codec packs, FRAPS or similar to try to solve this issue. You will break more than you will correct and you have fabulous chances to need to reformat your C: drive and need to reinstall Windows and all applications if you do not heed these warnings.
If I understand Bandicam, perhaps Camtasia would be a better choice. This ARTICLE goes into some detail on producing video screen-cap files from it, and editing in PrPro. Jeff Bellune contributed to much of that, and uses Camtasia to create many/most of his tutorials.