No storage location set loop

Hi!
I am trying to import videos from a Sony camera with a hard drive (AVCHD format) to the new version of iMovie and continually get this loop. The only way out is to force quit, shut down the computer and start again. I still get the same error.
In desperation I down loaded a trial version of Final Cut Pro X and got the same error loop. Luckily I did not spend the $375 for the program.
Has anyone overcome this problem or is there a way to cheat to get around it.
Thanks.

I think these are the steps I took:
1     Shut down the computer completey and then startup again (Camcorder disconnected)
2     Connect camcorder and in iMovie follow the procedure to import from camera. This triggers the launching of iPhoto - but as iPhoto started to launch I had the mouse pointer on the iPhoto icon at the bottom of the screen and right clicked the mouse with the option button held and selected 'Force Quit'
It worked for me and I hope it works for you! Later when I went to import again, both iPhoto and iMovie behaved as expected.
The whole thing is a mystery to me and the original message is no help at all and gives no guidance as to how to solve this (common?) problem.
Hopefully this 'bug' can be fixed by Apple engineers -fingers crossed.

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