Can I Import AVCHD to produce Standard DVDs in PE7?

I am in the process of evaluating new digital cameras, probably the Panasonic Lumix DMC-FX700 which records 1920x 1080 Full HD movies in AVCHD format. I am using PE7 and after reading several of the Adobe forums, I still have some compatibility questions, as follows:
(FYI: I'm using Vista Home Premium with an Intel Core2 Quad CPU Q6600 @ 2.4GHz. and 6GB RAM)
- Please answer each of my questions, if possible. - Thanks!
1. Can I bring the 1920x 1080 Full HD AVCHD format into PE7 AND PS7 as easily as with my MPEG and MJPEG formats?
2. I have read that the AVCHD videos experienced "jitter" when used in PE7.
a. Is this to be expected with PE7 and AVCHD?
b. If a problem can be avoided, which NTSC presets do I use?
3. I want to create a project containing still photos and movies mixed together; then burn to a standard DVD; play the DVD with jitter free, movie quality comparable to that obtained with my MPEG and MJPEG movies on a non-BlueRay player and view the project on a 50" plasma TV. I am NOT interested in burning a BlueRay or an AVCHD formatted DVD.
a. Which "Sharing" format do I use for burning a DVD to meet my requirements?
Thanks for the help.

Actually, AVCHDs load into Premiere Elements EASIER THAN mjpegs because the program is designed to use them (as long as you set up your project with a project preset that matches your AVCHD source specs).
Version 9 will even edit AVCHDs natively. That means that you don't have to render them before you edit them, as you did in earlier versions (including version 9). If you're going to edit AVCHDs, you really should get version 9. It handles them much more effciently.
But regardless, you won't see jitter related to the source files. Not with AVCHDs, if your project is set up properly.
You WILL however, need a powerful computer. At least a quad core or i7 computer. Otherwise the program will work very slowly.
The best advice for creating a DVD is to output your finished AVCHD video first using Share/To Computer/AVI using the DV settings. Then open a new project set up for DV, load the AVI to your timeline and output your DVD from there (using Share/To Disc). This will give you a sharper final video and will save you hours of rendering time.

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