Trying to switch to HD using CS4... Need advice.

I have been shooting a local dance studio's recital in SD for the past few years and I finally decided to switch to HD.  I recently shot their spring recital and noticed my laptop could not handle the HD footage (AVCHD) when I used the multicam feature.  The footage constantly skipped, which made it impossible to edit.  I eventually edited on the timeline. While I experienced no skipping issues on the timeline, editing three camcorders took twice as long on the timeline than it usually does using the multicam feature.
In addition to not being able to use the multicam feature, creating one blu-ray disc in Encore took way too long.  It took six hours to transcode a 54 minute video and one hour to create the disc.
My laptop specs include an Intel Core 2 Duo T9900 3.06ghz with 4gb RAM.  I realize this is not fast enough for editing HD in CS4.  What should I do?
Should I switch to CS5?  Do I need a new laptop?  If so, what should my specs be?  All advice is welcome.  Thanks in advance.

My computer is already beginning to be outdated, but it works for me with AVCHD... so I would now say that what I have is really a MINIMUM configuration for AVCHD editing
My CS5/AVCHD 1st Impressions http://forums.adobe.com/thread/652694?tstart=0 includes a link to the computer I built... since the GTX 285 is no longer sold, I would now go with a GTX 460 or whatever is the current "best bang for the buck" - AND I would buy 4Gig-by-3Sticks memory to be able to expand from 12Gig to 24Gig if needed
For my home hobbyist, family movies (which means that I am not trying to recreate Star Wars with video effects or many layers) AVCHD editing is "as smooth as spreading warm butter on hot toast" (also the MP4 video from wife's Flip camera)
My 3 hard drives are configured as... (WD = Western Digital)
1 - 320G WD Win7 64bit Pro and all programs
2 - 320G WD Win7 swap file and video projects
3 - 1T WD all video files... read and write
To buy ready made...
Desktop Video Editing PC http://www.adkvideoediting.com/
Laptop Video Editing PC http://www.sagernotebook.com/

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