Edit: Windows Live Movie Maker now works with MTS files. Set autosave feature in case of crash.
I really like the camera. I've only had it a couple weeks but have used it a lot. Video is crisp and clear on the highest def and the sound exceptional. Zoom is great and stabilization is good. The key is size. It is small enough to take anywhere so it does get used.
Now for the stuff I need to remember.
Join mts files:
Use tsMuxer It joins files is short order and will save the combined files as .m2ts.
Or use MultiAVCHD (which uses embeded tsMuxer and more)
Edit with quality loss: Edit the new m2ts file in Windows Movie Maker. Yes it takes 6 years to load but then editing works well. Saving as an HD wmv file take another 6 years. I am now itemizing my parts for a new 6 core AMD rig.
Edit without quality loss: I have not done this but one could convert the compressed mts file into an uncompressed avi file (huge) and then edit.
Playback: PS3 will play mts files.
Pinnacle 12 does work for editing/clipping the mts. When burning disk choose AVCHD disk and some HD type file for high quality. -Burning is best done when you leave for vacation, talk about slow-
(I have yet to find how to clip and then save as mts)
Other notes:
Handbrake will also convert .mts to .mp4 and h264. Here is a YouTube with settings.
Koyote (free) is a good converter. This program will extract the audio only as option. It also creates mp2 dvd. I was underwhelmed with the video on the .avi conversion. Maybe different settings would help. Chosing dvd makes a .vob file and the video appears better than .avi. Movie Maker can edit the .vob file.
Joining (appending) .avi files can be done with VirtualDub.
Joining .vob files can be done. Here is one free option.
Windows Movie Maker can then edit the .avi file. I found WMM was easier to clip/delete with but video quality suffers, audio stays great. WMM will save the .avi as .wmv and can create a dvd set and burn a dvd but will not burn .wmv without going through a recoding episode so if you saved a .wmv and missed burning, you might want to look elsewhere. (at least I couldn't do it)
DvdFlick will make a dvd file set with .wmv and burn to disk with ImgBurn. I think ImgBurn alone can do it but I don't remember how.
I'm certain better ways exist to edit .mts files but so far this works in a pinch. Still looking ....
This may be a good solution.
Try VOB Free AVCHD Editor for clipping and joining. Also copies bluray but needs code breaker.