I am new to video editing and hopefully this question will be an easy one to answer.

I have a Sony HDR-XR105 hard drive camera and I have Adobe Elements 7. I have used the Sony software that came with the camera to transfer the .MTS files to my PC.
I then used Adobe Elements 7 to render one of the .mts files to .avi and then also tried to render direct to a DVD. However the output is awfull everytime it renders.

I have a new Dell Optiplex with 4GB RAM and an Intel Core 2 Duo 3GHz E8400 CPU.

The output quality is really bad, the edge of surfacse and lines in the picture flicker and the film jumps every now and then. It seems like there are missing frames. I have seen this problem in the past when using USB to capture from a DV tape camera.

The thing is that the Sony HDR-XR105 doesn't have a DV output connector. It has USB 2.0 or HDMI. All the documentation describes using USB to move the files to the computer. I was thinking of buying a HDMI PCI-Express card to hopefully capture the video that way, however the camera has already captured the footage to a digital file, so I thought I should be able to simply copy the files a cross to my PC, edit them and render them to .avi or other formats?

I've been trying different things out all day and it's driving me mad, any help would be very much appreciated!