FCE No Data Error

I have read multiple threat here and other forum and did a bit of googling before i post this. i hope it's not a repetitive stupid question.

i have final cut express 4 and a canon LEGRIA HF M31 (PAL)
i made sure my internal and external HD are both formatted to Mac OS extended (journaled)
i have in FCE Easy Setup chose (all format) and (all rates) and (HDV - Apple Intermediate Codec 1080i50)
i connected my M31 via USB 2.0
in can see thumbnails and preview ALL my clips in Log and Transfer, within which preferences i chose "AVCHD - Apple Intermediate Codec" and "AC-3 Audio - Plain Stereo" as suggested by many

i got the wheel spinning for a while then a big fat red exclamation mark says No Data

i have tried to fiddle around with different settings ie different mixes of the above settings, still no luck.

ANY help will be appreciated as i have been trying to import video into my FCE for the LAST 3 days!

Thanks
Wallis