Convert AVCHD to edit in Imovie HD

Hi all. I must be putting search text in wrong because I'm sure this question is here. Or maybe not.
I just bought a Sony HD HDD camcorder which uses AVCHD. Now I know that imovie 8 can use AVCHD however as we all know, imovie 8 is very lacking in actual editing. I also know I can purchase final cut and edit AVCHD, however I can't dish out that amount of money right now, nor do I feel I really need to with what I want to do with my movies right now. So I want to know:
1. Can I convert my HD AVCHD format movie into another format which will work in Imovie HD and how do I do that?
2. Will this also be HD?
3. If this is HD, when I burn to DVD, will it play in HD on a regular DVD player? Only on a B-Ray player? Not HD at all?
I am probably the noobest person right now on this stuff but I wanted a HD camcorder because I do a lot of traveling to exotic places and we just had our first baby girl a year ago and want to do some video of her for our family. I knew that the there would be some problem with the format, at least at first, but I don't mind trouble.
Thanks for any help.
CKtreks

http://mac1080hd.com/
Try it on a very short file and see if you get good results.

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