Danielle. I loaded your clip in to PrP and had the sequence built based on the clip. I got the same seq settings as you did. There is an audio track but there is no audio on it so you dont need to have it on the timeline.
The clip plays great on my system. I would say there is nothing wrong with the clip and something wrong with your system.
I dont believe you told me what raid system you are playing your media back from.
I am playing back from a Dulce raid that can has a read/write speed of about 1000MB/sec.
https://www.dulcesystems.com/html/pro_dqg2.html
I also have a GTX 570 CUDA card as well as 64GB of ram.Your ram is really quite small for an edit system and Im not familiar with the graphics card. PrP elies on the Mercury Playback engine and the engine needs a certain level of component in order to playback HD video.
I am running CS6 current version. my system stats can be seen below. I would guess that the bottleneck is the hard disk your clips are playing back from. Please tell me what it is.
Tom Daigon
PrP / After Effects Editor
http://www.hdshotsandcuts.com
https://www.youtube.com/watch?v=DxPrG3WUyz8
(Best viewed at 1080P and full screen)
HP Z820 Dual 2687
GTX 570
64GB ram
Dulce DQg2 16TB raid