Hi, what to use to convert mts video...?

Hi,
What do you recommend I use to convert mts video to MPEG4?
(I have MacBook Pro with OS 10.6.7)
(I am looking for something free or cheap - I found shareware Tanbee AVCH but does not seem to work.)
I have imovie to edit.
Secondly, how do you extract the audio from a video file?
Thanks!

I am using Total Video Converter on App store, which can do mkts to mpeg4. Additionally, not only can it support extract audio from video, but support multiplex video and audio into one file.

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