Converting HD (AVCHD) .MTS files to DVD on a Powerbook G4

My NEW Sony HDR-TG1 camera has the ability to record in both HD (AVCHD) and SD (MPEG-2), however, iMovie ’08 states that ONLY the SD (MPEG-2)can be imported content; the HD (AVCHD) content appears to require an Intel-based Mac.
Does iMovie '09 support this functionality or can you recommend a software that will support the conversion of HD (AVCHD)to DVD using my Powerbook G4?
Thank you...

I'm new to this, so forgive me if I'm leaving out pertinent information or mis-stating something.
This is the potential secenerio which I am wondering about:
I'll be recording on the tapeless Panasonic HMC-150, onto SDHC cards. I'll put those cards into a card reader, and copy the files to an external HDD on my MAC. Then convert those AVCHD files DIRECTLY into an SD/DV format (no intermediary HD format), and do post in SD.
I assume that a Powerbook can copy any file off an SDHC card, right?
The only question, then (I think), is whether a utility can convert AVCHD into Mpeg2 or something else SD.

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