Need FCP conversion advice concerning Insignia Cam footage

Last year I was visiting my brother over in Europe during the volcano incident when all Euro travel was shut down. As a result, my dad and I were forced to drive basically all the way across Europe to get where we were going. Inherently, I shot all kinds of awesome travelogue footage. The problem though is the only camera I had was the piece of crap Insignia camera my dad had brought that he had recently purchased at Best Buy.

If any of you aren't familiar with it, its basically a Sanyo Xacti ripoff, a poor one at that.

Anyways, my issue is this. The format the footage is encoded in doesn't seem to be compatible w/ Final Cut Pro. I can import the clips without any issues, but in the Viewer they just play as a white clip w/ no sound.

Here is what I know about their format courtesy of playing them in VLC w/ the media information window open:

Container: AVI
Codec: H264 - MPEG-4 AVC
Resolution: 1280x720
Framerate: 29.97 fps
Audio: MPEG AAC (mp4a)
Sample Rate: 48 Khz

Any suggestions as to what I should convert them to for being able to edit them in FCP? I'd like to keep them in 720p @ 30fps.

I have Aimersoft Total Media Converter as well as the latest build of Handbrake which released yesterday. Are either of these programs ideal for a potential batch conversion of all this footage?

Any help is greatly appreciated. I've been dying to edit this awesome footage. Thanks in advance!
 
I've tried MPEGStreamclip, the clips are blank in there as well. Could it be an issue of me missing a codec or something, as far as MPEGStreamclip is concerned? I mean why else wouldn't they work w/ that program.
 
I just converted all the clips using Aimersoft Total Media Converter.

I converted them to quicktime w/ the same resolution, same frame rate, a bit rate of 5200 kbps. The frame rate seems to skip a bit though.

Also it converted all the clips without audio.

I am still looking for a solution here so any help is greatly appreciated.
 
Okay, I seem to be making some headway here. The reason why the clips weren't running in MPEG Streamclip is because I was having issues with Perian. Anways, the Perian issue is fixed, the clips are running in MPEG Streamclip now.

What I do need is some help with the conversion settings. I'm trying to convert it to Apple Intermediate Codec (AIC).

I have the obvious stuff down correctly: 1280x720 unscaled, quality 100%, Audio uncompressed|Stereo|Auto

What should I do about frame blending/better downscaling and what about the interlaced scaling/deinterlace video settings as well as field dominance?
 
Try a short test clip, and see what results.

As to interlacing, etc? What did you shoot? Progressive or interlaced?
 
The footage was shot in progressive.

I did do a short test clip. The video looks okay, no noticeable quality loss to my naked eye, and the framerate seems fine, however there is no audio. What could be causing that to happen?
 
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