Thanks for the response. My computer is a desktop with a AMD Athlon II 260 AM3 64 bit processor 3.6Gh with 4Gb memory. It runs Win 7 and has a Radeon Powercolour HD 5450 1GB graphics card. There are 2 hard drives each with 2/3 rds free space.
I have tried all resolutions of HD that are on the camera and get the same effect each time.
I have tried converting the files to Mpeg and avi with no sucess. I will try other conversions.
I am sure that the problem has something to do with the resolution of the image as with the software supplied by Panasonic, the editing view exhibits the same "shimmer and wave" but when in "Play" mode and when it writes to DVD the effect has gone.