I'm having the same problem and it is driving me crazy. I have a canon HF20 using AVCHD files. I have an Imac 2.24 dual core with 4gb of memory. I try and try and try different setting to export and the final results is the same choppy video. I know if is not my computer because I see the CPU activity and memory. I do the following on premiere:
1- Open Premiere
2-New Sequence with a property of AVCHD 1080 29.97 Frame
3-I drag my AVCHD Video from The camcorder to the time line
4- I go and do some color corrections
5- File -- Export - Media
6- Quicktime
7- Encoder H264
8- Resolution 720
9- Frame Type: Progressive
10- ok
11- Start the queue
This is my last setting because I try a lots of setting. Can anybody tell me step by step that successfully have an export movie that play smooth.