From what I've seen trying PD7 on three different computers, one being quad core and two being dual core, the resolution of the AVCHD clips has some bearing on how fast or sluggish things get.
I have Canon HF100's and the full 1920x1080 files seem to be handled without seeming sluggish on the quad core 2.4Ghz machine which also has a GeForce 8800GT 512MB graphics card.
A dual core AMD 64x2 5000+ (meeting minimum specs according to Cyberlink) was some sluggish and often gave stuttering playback from the timeline.
A laptop with Intel Core2 Duo dual core 2.0Ghz will edit 1440x1080 files albeit a tad slow.
Until I put the GeForce 8800GT in the quad core machine, using Pinnacle Studio 11 it would warn of not enough graphics memory to edit 1920x1080 using hardware acceleration and proceeded to shut that off. Attempting to continue editing was successful but extremely sluggish for a while. But I also had frequent crashes. Setting the camera for 1440x1080 helped a lot, I was able to edit a couple of projects without too much trouble. A bit slow but AVCHD tends to be slow to some degree in many editors.
You might try setting your camera for 1440x1080 and see if that improves things any. On the tests I ran, looking at rendered WMV files on computer with Samsung 21.6" monitor, and BD compliant output to regular DVD+R played on a Sony Blu-ray connected to 42" LCD 1080p TV resolution still looked great.
The situation is likely to get worse with the next generation of AVCHD camcorders coming. Mine is 17Mbps at 1920x1080, 12Mbps at 1440x1080. The Canon HF11 just released has 24Mbps and other manufacturers are looking at similarly increased bitrates.