That's right Jeff. Nikon uses the AVCHD codec and as such, one cannot use it as a direct distributive source. It is a complicated royalty based system for Licensees which someone tried to explain to me once but I stopped her to eat my salad.
That's right but it's not unique to this Nikon camera. The Canon 5D and 7D apparently have a very similar disclaimer.
Here's what the Nikon disclaimer looks like:
Here's what the Canon disclaimer looks like:
If your really want to be bored to tears here's an in depth discussion on NikonRumors
Edit: Oops, I should learn to read. I just noticed the link above is what started this thread. I'm sorry for the redundant post. It didn't seem like it was being made clear that this is a bit of a worrisome issue for owners of all video capable DSLRs, not just the NikonD7000.