log & transfer issues

I've just installed FCE. I've been trying to log & capture files from my 7D dslr (files copied from CF card to file on desktop) but FCE keeps giving me a warning that I must select a folder with supported media. All clips are .mov files. Not sure if it's a set up issue, codec issue, hardware issue... I can import the files but the playback is choppy and jerky (impossible to cut). Any suggestions?