MTS files & FCP 7. why, Why, WHY?

WHY won't these stinking MTS files play nice with my FCP?

Here's my situation:
* I am running FCP 7 on an iMac OS X version 10.7.3 (Lion).

* I am attempting to import and convert MTS files from a Panasonic AF100 camera.

* I have downloaded and installed the AVCCAMImporter (before I realized it works for Mac OS X 10.5, 10.6, but perhaps not for 10.7 Lion)

* The raw files are already on my external drive, all ready to be logged and transferred. But when I go to do this, the MTS files are greyed out.

I am seeing a lot of people bemoaning these transfer issues with the new FCP X, but I can't find any info on converter programs that work with FCP 7/Lion. Ideas? Help? You all rock.