AVCHD: how to deal with the .MTS files in FCP 5 or iMovie 08

I just bought a Canon HF10 AVCHD camcorder and stumbles into the difficult editing process with FCP 5. Here are my steps:
- Conversion of the camcorder .MTS files with iMovie 8; they are then transformed into a .MOV sequence. A 14secondes sequence recorded in the highest quality (FXP, 17Mbps) is captured as a 28MB .MTS file by the camcorder, rendered as a 231MB .MOV file by iMovie 8, and it took 53 sec to process it !
- I export the sequence as: Share >Export Final Cut XML…
- In FCP 5: import XML…then I tried different modes: AIC 1080i60 (image is overstreched), AIC 720p30 (proportion is OK, but I captured in 1080…), AIC DV NTSC 48kHz (not HD…) BUT none of the resulting sequence is rendered, I still have the red bar above the timeline.
For financial reason, I’d like to avoid to go to FCP 6, which seems to work natively with the AVCHD format.
My questions are:
- is there a way to reduce the size of the iMovie converted files: 900MB per minute ?
- is there a way not to have to render the imported files in FCP ?
Can anyone help me ?

I have the same camera and the reality is you're going to go through that translation from AVCHD to some sort of Quicktime file format no matter which tool you use. I do it with FCP6 and it needs to do the same translation from the .mts files to (they recommend) ProRes files. AVCHD is a highly compressed format and when you move it to an editable form, the file(s) is going to get much larger. It is HiDef content after all which can be quite large.
In my case, once I do the transfer to ProRes format nothing needs to be rendered in the FCP timeline unless I add some sort of filter or effect to it.
The rendering problem you are describing is often caused by the Sequence setting not matching the content settings. This is automated in FCP6 where it detects the content format of the video you're trying to add and changes the sequence settings to match the content. Take a look at the sequence settings and see if they match the structure of the content and that should resolve the 'everything needs to be rendered' situation.

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