Importing HD from movie transfers

[carcacha]

I recently had all my home movies transferred to digital format by Home Movie Depot. They did a great job, but I'm having problems editing them with VideoStudio 10 Plus.
The AVI files import stretched in 16:9 ratio, which doesn't happen in Adobe Premiere Elements demo version.
The HD MPG files won't import - I get a message "File Format Mismatch," along with a code in brackets: [16803:1:2]. I even went to "Tools" and "Change Capture Plug-in" and set it to HDV, but it still won't work. Adobe imports it fine.
The standard MPG and DVD VOB files import and edit just fine.
Any ideas? I really want to edit my HD files, which are higher quality, or even my AVI movies.
Thanks!