I've checked the settings. There are two differences.
The video mode setting in capture is 'DV/IEEE1394 capture' whilst the others are 'Microsoft DV AVI'. Also the field settings for my imported clips are 'unknown' whilst the others were 'lower field first'. I hope this helps shed some light.
I do render before trying to view. I have noticed that the preview indicator area only turns red around the area of the transition, whereas when it worked for me using mpg's the whole length of the preview indicator area turned red (and then green when rendered). I've tried scrubbing and still...
I am new to this software so please be patient with me. I am having problems with transitions and playback in the program window. Transitions work when uing mpg files, but not with avi. Use mpg I hear you cry. However, playback of footage from the timline using mpg is 'stuttered' ie not smooth...
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