My iMovie version 5.0.2 (in iMAC) won't recognize AVCHD Files

I just purchased the Panosonic Lumix camera which does HD videos, however my iMOVIE HD (5.0.2) in my version iMAC (MS OSX version 10.6.7) will not recognize the HD video files (AVCHD) and allow me to import these files.  And yes I've tried connecting thecamera directly to the iMAC and that didn't help
Please help

You'll need to upgrade your version of iMovie.
5.0.2 is very old and can't import your files.

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