Your computer isn't likely powerful enough to edit this video format. (You'll more likely need a quad core or i7 to do it.) But you can do a few things to minimize the effect:

1) Make sure your project properties match your source video. This will be hard, since that pocket cam doesn't work with standard camcorder codecs. But start a new project and, in the project set-up panel, select the option to Match Project Settings to Media and sample a clip so that the program can do it's best to match the footage.

2) Set your Preview panel's playback quality to as low as possible. Draft/Automatic is a good choice to start with. This will prevent the program from diverting power to creating a good clean view of your video. It may look ugly, but at least it will play somewhat smoothly.