iMOVIE not opening SD Card/Camera

Hey guys,

This is my first post to this forum. This is a great place where I have learned a lot. Now i have a problem and hopefully its easy enough to solve.

So i use iMOVIE a LOT to make short recordings. I have a Canon Vixia HF200 camcorder. It is hd and the format is AVCHD. To transfer the files, i usually use imovie. If i need it for FCE, then i export it from imovie as an .xml. To import the movie to imovie, i plug the SD card into the slot and just hit import from camera. It loads all the video files and I can select the ones i want to download.
Yesterday, after taking video, i tried to do the same and i am getting no luck at all. I plugged in the SD card, went into iMOVIE and hit import from camera and i keeps loading up the isight camera instead of my SD card contents. It is really frustrating and it keep opening up isight and it hasnt done this before.

The following is what i did to troubleshoot:
1.) Ejected SD card, shutdown iMOVIE, restarted and then replugged and restarted - No luck
2.) Plugged in camera directly using the USB. Computer realizes camera but again when i hit import from camera it goes to the isight camera and it asks to "begin capture" - No luck
3.) So i deleted some of the contents on the card which were shot in MXP (a new format i tried) and still no luck...again opens the isight camera - No luck
4.) I restarted computer and tried the same - No luck
5.) Shutdown computer, unplugged it to reset the USB slots ..tried again and no luck.

Any way you guys can help? It is really weird that it just randomly stopped working. All settings in FCE were set to original though i dont see how that can affect this. I am shooting a short movie this weekend so will have a lot of videos i need to transfer. So..summing it in one word....HELP!!!

Thanks!