Why Doesn't Premiere Elements 12 Recognize My Sony AVCHD Camera?

This is my first attempt at using Premiere Elements 12.  Unfortunately, it is not recognizing my Sony HDR AVCHD format camera.  It uses a san disk.  I get a message "No supported devices detected".  It does find the jpg photos, though.
So I directly loaded the MTS files onto my iMac and created a DVD.  It looked pretty good, but not as good as playing the camera directly on a TV.  I found something on another Adobe site that indicated if there were problems with Premiere reading from the card that the files could be loaded to the hard drive.  It said "Be sure to copy the entire file structure of the card instead if just the clips".  I'm not sure what that means.  All I did was download the MTS files.
So I really have 2 questions here -
1 - why doesn't Premiere recognize my camera
2- Is there something on the san card I missed downloading that could improve the quality of the DVD being created?
Any thoughts would be appreciated. 

Rickster213
Thanks for the reply and your additional comments and results.
I think that we need to make distinctions between Quality (how good or bad the results looks or sounds to you) and Resolution (Frame Size, Display Size). Often the two can go side by side.
What you are seeing at the camera level is 1080i which is interlaced video at 1920 x 1080 @ 29.97 interlaced frames per second. What you are seeing when you play back your finished DVD-VIDEO on DVD disc is based on 720 x 480 @ 29.97 interlaced frames per second (if standard 4:3) and 720 x 480 @ 29.97 interlaced frames per second accompanied by a 16:9 flag to stretch the 720 x 480 to 856 x 480 for display after encoding. Another factor is what the TV or computer player is doing to your interlaced video for viewing purposes - deinterlacing or not and with what method. Some TV's come with technology to enhance the DVD-VIDEO display. Most TVs larger than 32 to 42 in tend to show the differences between higher and lower resolution more readily.
Since you have interlaced video source, each frame has two fields, with either Upper or Lower Field First. Your source probably is interlaced video with Upper Field First. Consequently, in the project, you may have to adjust that to Lower Field First if your destination is DVD-VIDEO on DVD disc which is characterized by Field Order Lower Field First. Something to look into for the "better" aspects considerations.
Now if you decide to take your Timeline content to AVCHD format on DVD disc, note that the format of AVCHD format on DVD disc is different from that of the DVD-VIDEO on DVD disc (Instead of OpenDVD and VIDEO_TS Folder, you have the BDMV Folder). Your AVCHD on DVD disc will have resolution (Frame Size, Display Size) of 1920 x 1080 pixels. Under these circumstances, the capacity of the DVD disc can become a problem with larger projects. When you burn your Timeline content to AVCHD format on DVD disc, what is on the disc will be an 29.97 interlaced frames per second characterized by Upper Field First. So, if your interlaced source and the destination product both use Field Order Upper Field First, then no need for Field Options adjusts. However you do have one opportunity for a progressive frame rate for the AVCHD on DVD. It is not 29.97, rather 24. See Presets = H.264 1920 x 1080p NTSC Dolby in the AVCHD on DVD set up in Publish+Share/Disc AVCHD disc.
I have generated some very great looking DVD-VIDEO on DVD disc (standard and widescreen) and have been very pleased with the results and how my viewers received them. The thought is getting the best possible DVD-VIDEO on DVD and enjoying it without laboring on how it might have looked as Blu-ray or AVCHD if you do not have Blu-ray and do not have a player for AVCHD on DVD disc.
If you need clarification on any of the above, please let me know.
Thanks.
ATR
Add On...In post 3 marked in reply to me you wrote
"On a side note, however, I'm not sure I agree with the statement that going to standard def would lose a lot of video quality"
I did not write that in any of my posts to you. That is why I have gone through the detailed account to qualify that statement from wherever it came.

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