Michael,
I have this same problem, so I downloaded Streamclip, but my problem is not that I can't convert the files to an editable format, it's that I can't even get the files on my machine. It doesn't appear that the Sony Handycam DCR-SR42 has a firewire option, although I could be wrong about that. Is it possible to get video onto a Mac via USB? I don't care about quality or anything. Just, is it possible at all? And yes, I know I screwed up by getting the wrong camera.
Thanks,
The Road Split