Bah. Still no go, same steps, except I'm using a non-default codec pack to support the avchd files from my HD camcorder. Are you running windows XP? I'm running Windows Server 2003, which could also be the issue, but typically as not, since XP and 2k3 are built off of a very similar kernel. Things that work in XP usually work in 2k3.
*sigh* oh well. I guess I'll keep trying
Thanks for the help though, I'm close. At least I have hope now, knowing at least somebody else out there has successfully done this.