Research on .mts file formats

Info I found on forum, will this work?

"You've got what you need on hand in Vegas. Best bet upfront (and least expensive) is to just convert the files to uncompressed .avi files. So just like when you take a Nav' test, here's the KISS Program for doing what you need in Vegas:

File > New Project
Under the 'Video' tab choose the following settings;
Template - HD 1080-60i (1920x1080, 29.970 fps)
Full-resolution rendering quality - Best
All other settings in the video tab should be left at the default settings. Don't forget to specify where you want your 'Prerendered Files Folder' to go. If you have a separate harddrive to store your video (which you should) you'll need to input that info in or it will go to your C: drive and end up causing you some major grief by slowing down your system.
Under the Audio Tab choose:
Master bus mode - Stereo
Sample Rate - 48,000
Resample and stretch quality - Best
All other default settings are fine and again in the 'Recorded Files folder' portion you'll have to input where you want the recorded audio files to go. As previous you want these files to go to your separate drive too.
Since you have the clips on DVD, load them up and then go to File > Import > Media and load them all into the Media Bin. Once you get them there, then drag them one at a time into the timeline and then drag the yellow slider just over the timeline ruler so that it covers the clip from one end to the other. Next go to File > Render As.
In this window you'll have to make a folder for your rendered clips to be stored. Again you want this to be on a separate drive. Once you've made the folder name the file and put the following number after the name; 001. Number all your clips in sequence like that as it will save you time and headaches trying to find your clips. Next do the following;
Save as type - Video for Windows (.avi)
Template - HD 1080-60i YUV (Next to this will be a button that says 'Custom'. Select it)
Custom Settings > Video format - Uncompressed
Hit 'okay'.
Back in the Render As window your new settings will be visible and just below them check;
Render loop region only (that's the blue area you chose with the slider)
Stretch video to fill output frame size (do not letterbox)
Uncheck everything else.
Hit 'Save'.
Do the same with each clip. Since Vegas doesn't have 'batch rendering' you're going to have to repeat that for each clip. Rendering from .mts to uncompressed .avi will take some time with a slower system. However, once done you'll be able to handle your clips easily. This you can do now. Save your cash for the new system. Hooyah!"

http://www.videomaker.com/community/forums/topic/how-to-edit-mts-files