Disappointed Stuttering .MTS Files In Program View Before Render

AVCHD, MTS files on my CS4 Premiere Pro. In the program monitor, when I am trying to make tight edits and add effects in specific spots, the video is stuttering as if I haven't enough power.
I just got a dell XPS 730, INTEL Core2 processor 2.83, 1333 FSB, quad core 12 MB of cache, Dual NVidia GeForce 9800GT Scalable Link Interface video cards, 4GB of DDR3 SDRAM at 1333 MHz. The hard drive is a SATA 2 at 7200 RPM.
When I render the video, it plays okay, but I have enough power to watch it smoothly on the program monitor as I edit. What is the problem?
A few years ago I had a very small computer and Premiere 7.0 and I had no problems.
I called tech support and they were clueless. They sent me from India (2 levels) to the States, a 3rd level.
I need smooth video BEFORE I render. What can I do??
P.S. The video (.MTS) plays fine on Windows Media Player.
I have Vista Ultimate.

Well, my man, if you're over 50 like me and have watched the development of commercial software for 25 years on distributed platforms, you know that Adobe more than any other company has gone out of their way to BLOAT their products into oblivion. Being a retired corporate programmer, developer, designer, integrator, buyer, and ultimately officer and executive, I never understood the logic of their approach on any level. They have single handedly spawned a whole sub-industry of Adobe alternatives.
They simply don't write tight code anymore. And the number of user complaints is way above the median for the industry. We are on release 10. The product simply needs a rewrite. And they need to re-remember that the BEST software works seamlessly with the user. It doesn't now.
Premiere Pro fulfills a need to a high degree. BUT it's not perfect. And there are better written NLEs out there.

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