Hello Dave, Thank you for responding. If you wouldn't mind (OR IF YOU ARE NOT AVAILABLE, SOMEONE ELSE TOO), I need to understand each part of what you wrote so I can better figure this out because some of the terms are not familiar to me (yet).
1) "Firstly, Flip4Mac enables you to play .wmv files on ytour Mac, so it will have no effect regarding your avi files."... OK. Apparently the Apple store "Genius" is less then genius because they recommended this as a fix.
2) "Secondly, the avi format is just a container for the video/audio etc that makes up the complete video. They can be produced by using various codecs, so it's possible that a codec was used that iPhoto/your Mac doesn't recognise."... I am unfamiliar with a "codec". How can this be fixed for my camera and iPhoto? I know that iPhoto can play an AVI video clip because I only have one in there that I got from someone else and it plays fine. So basically it is the actual transfer of the video information that we need to fix, correct?
3) "Can you dig into the file structure in your camera to find the videos? If so then just drag them into a folder on your Mac."... I have no idea how to do this, sorry.
4) "If they subsequently won't play in Quicktime then try installing MPEGStreamclip and converting to Qyuicktime.
http://www.squared5.com/svideo/mpeg-streamclip-mac.html"... I also downloaded Squared5 earlier (among my other downloads which I also have now trying to fix this problem - they're all in there). I rebooted and crossed my fingers when I reconnected my camera (again). It was so slow and it was doing it's importing process for over an hour and then it said the import failed (again). I mean, I just did a regular download of Squared 5 - shouldn't it just work? I went into System Preferences, it is there. It shows as the DC30 Xact Driver 1.6.3. At the bottom of the box it has the DC30 status as: "The driver did not load, or was unable to find and start your DC30/DC30 plus. Please restart your computer, reinstall this driver, and check your card." OK, so apparently it didn't download properly. I don't know why or what I did wrong. I did restart my computer after I downloaded it so it shouldn't be that. I am not sure how to "check my card" as it is also indicating.
ONE MORE INFORMATION TO MENTION... when my camera is connected to download the photos during all these test runs, it either shuts down or goes in powersaving mode after a long while (probably because it takes a long time for the import into iPhoto and then it ultimately fails the import). I don't think it should affect the import because all the photo thumbnails are still showing in the iPhoto import pane, along with the camera indicator on the left side. I just thought I mention it anyways.