I don't have the Final Cut 5.1 so does this mean that I can not edit material that I have shot with 720p 25fps? am I stuck? is there a solution here?

Please help me, even thou I know this subject might have been covered here many times before.

You can't capture and edit native 720P25 HDV without FCP 5.1.2.

However, you can use m2t capture tools (HDVxDV or DVHSCap) to capture your stream and then use MPEGSTREAMCLIP to transcode it to an intermediate codec for use in any version of FCP.

There's loads and loads of information on the forum describing this process.

Look at post #10 of this thread.
http://www.dvinfo.net/conf/showthread.php?p=563921