Clipwrap converts or re-wraps some Long GOP MPEG formats into usable I Frame formats like ProRes so that you can edit with them in FCP7.
AVCHD is supposed to be a standard, but camera makers add their own little tweaks - as they know infinitely better than their users. So you end up with cam files that just work like my Panny or your Canon... or you get wierdness like my mate Dee's Canon 650 DSLR that absolutely refuses to have anything to do with FCP7's Log and Transfer. He gets along just fine after running his files through MPEG Streamclip.
Dee has given up completely and moved wholesale to FCPX (don't do this if you are still working on your doc about your dad's adventures in WW2).
His cam is recognised and he just gets on with editing.
Except he has bought a $1000 DJI helicopter with a camera on and now I'm expected to sort it all out.
Good times. I am absolutely clueless about helicopters. He shoots wedding videos. I suppose it might get some funny shots chasing the bride through a muddy field of farmyard animals or something. Cam is nice though, it has a gyroscope and everything.