IMovie 11 and Jpeg Linear PCM. (Codecs).

Hello everyone. I recently shot on a camcorder for use in iMovie 11. The default format was .mts. It imported to iPhoto, automatically when it recognized the device. I moved it out to convert it to a format readable by iMovie 11, like .mov or .mp4. all imported well.
I have also tried to now reconvert it from the source, without it being imported to iPhoto.
I assembled my project. Again, all well. When I went to "share" it shot me a 25 hours to 5 day estimate.
Off to the Apple store I went, the guys were great as usual. This time they had to escalate the matter to an iApps senior analyst. Again, wonderful fellow.
We determined via a set of tests  that the problem is in the source clips. Even though they look and play fine, something is not adding up.
I began to reconstruct the project anew. I used the same source but in very small increments. I noticed that a 3 minute clip was estimating 15+ minutes. iMovie is slow at times, but that is extreme. So, I started fishing around and finally noticed this from my source clips (after conversion from .mts)
Figure 1 below shows the file as dragged from the camera to my hard drive
Figure 2 is after conversion
That is the file I imported to IMovie which is gargantuan.
The good news is that I do still have all the original source (.mts) files; I just don't know if that will help me.
Now, sadly I know nothing about Codecs, but the Jpeg-Linear PCM description leaves me really wondering "my Lord, what have I done?"
And so, after all of your patience, I finally ask this:
If I am onto the answer; is there away I can convert this to an iMovie frienly format that will allow me to export effectively?
I am sorry for the length of this post and am greateful for any help you might offer.

Thank you again.
You are correct, of course.  I do not have the media card that housed the .mts files. I had, perhaps errantly, thought that by dragging the entire contents of the media card to a hard drive that this would suffice. Clearly, something went wrong. I was able to have iMovie read the files, as I had used a 3rd party package to convert to .mp4. The issue was the size of the resulting files and their behaviour in iMovie.They were so bloated that I could not even skim over the clips in the editor window without a 1-2 second delay and even then, they would stutter.
I seem to now have my hands on a converter that is doing the job, although I am navigating through some audio to video sync issues.
I am very grateful for your time and expertise.
Thank you

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