Can only import

I have mocha v1 2.2 soho edition. I have tried to import avchd 30i and could not. I get the “Failed to open the movie file. Check that it is readable.” I encoded to dvcpro hd 720 30p and get same error. I then encoded into quicktime and it imported. Is this correct? I have read and watched all tutorials that I could find - and have read that mocha imports “all standard files” including all hd. I have also checked repeatedly that only “latin characters” are used in path. Does this include periods and such. I have also tried coping files to other internal harddrives and folders. I am new to digital video so there is probably something obvious that I am missing. Is their some way to use quick time and retain original format?
-my setup-
windows 7 rc
Production Premium cs4
phenom II 955 be
asus m4a78-e
2gb2 ddr2 800
ati hd4850 gddr3 1gb
250gb harddrive seagate 7200rpm
Thanks for any help