Hello John,
FCE doesn't work with 8-bit uncompressed material.
What exactly is the source media? (Open it in QuickTime and do *Window > Show Movie Inspector.* What does it say about the format/codec/size & fps of the media?)
As for using an AIC sequence, your material would need to be QT/AIC, not 8-bit uncompressed. And if you have 1080i material, it will do no good trying to put it in a 720p sequence.
When you do +FCE > Easy Setup,+ do any of the AIC setups show there? (You may have to click Format > All Formats to reveal all the Easy Setups.) Assuming they show there (and they should), you could select the HDV-AIC-1080i60 easy setup, create a new sequence, load your clip(s) into the new sequence, and see what results you get. But again, your material would really need to be AIC before you import it into FCE. (See
MPEG Streamclip for possible conversion.)