I drag the AVI file into the top window like I would with any other file, and it puts the video there, but no audio channel. MPEGS, and everything else create an audio track, (you know, when it says "building peaks"). Is there a setting that I have to change? Whats going on?
Check to see if you've got audio with your video - I've capture footage WITHOUT audio, before now. Check to see if you've got audio. Have you tried to Preview the clip directly from the Media Pool? Check this first.