Help needed. Can I import MTS files directly into FCE?

I am currently using iMovie, but iMovie doesn't recognise the .MTS files that my Panasonic AG-HMC41E produces.
I was thinking of upgrading to Final Cut Express, but I don't know if that will solve the problem or not.
Can anybody confirm that FCE will enable me to directly import .MTS files?
Thanks in advance,
Mike

As far as I have heard, transcoding to Apple Intermediate Codec (AIC) makes a file that scarcely looks different from the original MTS; I should remind you that if you were able to ingest the MTS files directly into iMovie or Final Cut Express, they will do the same thing - transcode to Apple Intermediate Codec; they're just doing it within the interface of a capturing process. When they are ready for editing, they are now AIC. An app like Streamclip or ClipWrap is just helping you get this done outside of FCE or iMovie.
ClipWrap 2 can rewrap your mts file as a MOV and leave it untouched - quality is the same. However, FCE won't edit that without having to render a lot. It's best to transcode it to AIC.
There is a higher quality codec than AIC, called ProRes, but only Final Cut Pro can edit this.

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