PP2.0 > AE7: HDV footage not recognized by AE

I want to color correct, timewarp, motion effects etc my HDV 1080 60i (1440x1080, 1.33 PAR) Premiere Pro 2.0 project in After Effects 7.0 (Windows). But when I import the PP2.0 project file into AE, AE cannot find/link to the source footage (created AE comp thru dynamic link, so project settings are the same). All the vid files are just placeholder color bars. When I try to "Replace Footage" in AE to link to the source files, I get this error:

After Effects error: an unspecified AVI or DirectShow error occurred. The requested lookup key was not found in any active activation context. (1)
( 53 :: 33 )

The only solution to this I found was to rename the extensions of my source files from "mpeg" to "avi". Tried this but it didn't work, still got the above error.

Searched the COW, but didn't find any sol'ns addressing this. What can I do? Why is everything so hard??