enought performance for editing with AVID?

Hi,

let me start with some info about

1) my PC:

AMD Sempron Processor 2600+,
K8NF4G-SATA2
1.61 GHz, 1,18 GB RAM
Windows XP Prof, Service Pack 2.
internal hard drive: 30 GB (could be enhanced)

2) about the software:

AVID Xpress Pro 5.5.3

3) about the footage:

shot on Panasonic HVX200.

Now the question:

is it possible to edit the material (offline) on this system?

My attempts so far to import the material (recorded on P2Cards, now on a huge external hard drive), have not worked out. The message appearing is "The file format ___.xml is not supported for import).

Or am I making a mistake in importing the files?

Thanks!