Well, tonight I finally figured out how to properly import the video files from my new camera into my computer and edit them without losing quality. The entire problem has to do with the damn default video encoding that Sony saves movies to on the camera's harddrive. Fucking Mpeg2 and a seperate Modd file for the audio. Arg.
If I'd initially edited with Windows Movie maker I wouldn't have ad any problems at all but stupid me wanted to use Studio 9. Oh well. Screw you studio 9. I still need to find if that have a patch/plug in to be able to use mpeg2 / modd files as the source files. I'll save that search for another day though.
Well the weekend is about half over but it's been productive.