I had to re-install Premiere Pro CS5 and now video are files acting funny...

Hello. I had to reformat my system drive and did a fresh install of Windows 7 Home Premium 64-bit and then I did an anytime upgrade to Windows 7 Professional 64-bit. I then re-installed Premiere Pro CS5. Here's the problem. When I open any of my projects that I worked on BEFORE I re-installed Premiere (when I was using Windows 7 Home Premium), the video files on the timeline all look corrupted when I play the timeline now. They have these weird block artifacts and also a constant pulsing thing going on. I deleted all the media cache files and all the media cache database files but, nothing changed even though Premiere conformed every single video file in the project again. Then, I went to "Sequence" and hit "Render Entire Work Area" and after Premiere was finished rendering, I noticed the artifacts and pulsing are completely gone BUT, the video files look like a VHS tape that has been recorded over a few times. The edges of people and things in focus aren't nice and sharp like they were before I re-installed Premiere. I DO NOT have the time or patience to have to delete all the video files and import them again into the project and re-edit the entire scene! Can someone please help me resolve this problem?! I am about done with Premiere!
Is there a way to delete the video source files that are on the left side of the timeline (next to the "Source" window, where they got imported into the project) without deleting the edited video files on the timeline and then re-import the same source video files into the project, kind of like "refreshing" the video files? If this is possible, it seems like this would fix the problem without me having to re-edit everything again.
*Update*  My idea of just re-importing the source video clip won't work either. I deleted one of the source video clips, which deleted its reference clip on the timeline, and I re-imported the video source clip to see if it would play all weird in Premiere and sure enough, it has the same exact block artifacts and pulsing effect like all the other source clips in the project. It seems that if that's the case, it might be a codec problem. But, that doesn't make sense because if I open the clip on my hard drive with Windows Media Player or Allplayer, the clips plays perfectly fine and looks like it is supposed to. So, it must be a codec problem in Premiere??? Could it be that Premiere Pro CS5 doesn't work well with Windows 7 Professional? I find that hard to believe. Can someone please help me?
By the way, all the video clips in the project are from my Panasonic GH1 or my Panasonic GH2. They are all 1080p/24 AVCHD. I even made a new sequence within the same project making sure the sequence settings are AVCHD 1080p 24 and still nothing is fixed.

Have you tried exporting a 10 second section of the footage to see if the issue shows up once the seqeunce is actually exported from the timeline. I edit on CS5 with windows 7 pro at work quite often and have no issues so I assure you that isn't the issue. I also edit with AVCHD footage when at home and work quite freqeuntly as well so I'm positive that isn't the issue. It sounds like a GPU driver has been corrupted in the way it interacts with premiere pro. What type of GPU do you have? If it supports MPE's GPU acceleration have you tried turning it off and seeing if that makes any difference?
Anyways though try to export a 10 second test section of your timeline to see if when the clip is exported from premiere it will play normally in windows media player or vlc or w/e media player you want to use. If it exports fine then you can almost be positive it's a corrupted video card driver. If that's the case I'd re-install your GPU's driver and also check your gpu makers website to see if they have a updated driver avaiable.

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