World's first frame accurate H.264 AVCHD cutter without re-encoding!

Hi there, I purchased Smart Cutter because I want frame accuracy when removing ads from TV movies. First I tried SC (running on a Mac Pro under 10.8) with a downloaded HD movie from my online tv recorder. The show was in an AVI container but is h.264 encoded. Plays well in VLC. Trying to open the AV...