It can (should).. although you might want t download a fully working trial version to test before buying
But what spec of machine is your PC. That is quite crucial too
WMM does not edit h.264 from any camcorder, not just the Sanyo, AS it hapens h.264 is a standard but the codec employed bythe indiviual brand is not similar
Did you see
Editing AVCHD ??
Although you did not ask, I would be wary of getting the Sanyo on the promise of "HD"
It shoots 720p at 30fps, Its Image stabilisation is not famous for how good it is and Auto focus speed and accuracy , low light ability and colour rendition, underwhelming
Also no HDMI or component out makes me wonder how you view its " hi def on an HDTV
In its favour are low price, promise of a good stills ability and the pocketable pistol grip shape which ultimately is not what it promises if in encouraging hand holding , will be testing the image stabilization
If you must get it, try and buy from somewhere you can return it if it doesnt float your boat
Good luck