Thanks Neil. I believe I used the correct steps. I copy the entire folder from my camera. Opened up Premiere and navigated to the folder using the media browser. I then imported from there. Now that all media is conformed It kind of plays in the timeline but it's a little finicky. I also have a yellow bar above my timeline. However I made the sequence by dragging a clip to the new sequence icon. I thought AVCHD was a native codec for Premiere. I was however playing the files from a external hard drive. This one:
http://www.amazon.com/gp/product/B00KU686D2/ref=oh_aui_detailpage_o02_s00?ie=UTF8&psc=1
I am wondering if it's too slow because of USB. My other drives are internal. So right now Im copying the files over to my internal to see if that makes a difference. However I am also having to copy other older projects over to the WD drive to make room on my internal scratch disk. ERRGH!
Your thoughts?