Hmm, it should recognize the card, have you tried, with the card in your reader, using the import footage from camera option from the dropdown? You'll never be able to import the mts files directly as it requires the AVCHD folder hiearchy and aux data files to read it correctly... You can also try with the card in the camera, hooking the camera up to the computer and see if it works...
Did you check on Apples website to see if the SD-1 is an officially supported camcorder?
If it won't recognize the video on the card no matter what you do, you can always try to transcode it with something mpegstreamclip (free) or VoltaicHD (costs money and is slow to convert)