Amen to using Vegas Video, actually using it now to edit some IOA footage...
Here's a trial link:
http://www.sonymediasoftware.com/dow...p2.asp?did=583
If you think Vegas 6 is out of your price range, you could get Vegas Movie Studio, almost all of the same great features for only $99.
EDIT: You also may want to try re-capturing your video from the camera with vegas, if you choose to get the trial, because the problem could've occured when you were transferring the video...