Is transcoding necessary?

Is transcoding necessary? I have a PC running Windows 7, Adobe Premiere Elements 11, and shoot with a Canon 5D Mk2. I am new to movie making with my DSLR and am keen to learn more. If transcoding is necessary, what software is required? Is it easy to do? Thank you.

Some reading that may answer that, and many more questions
Online User Guide http://help.adobe.com/en_US/premiereelements/using/index.html
-Page to download current PDF http://helpx.adobe.com/premiere-elements.html
Importing Video http://forums.adobe.com/thread/1065281
-and project settings http://forums.adobe.com/thread/1112086
Saving & Sharing http://forums.adobe.com/thread/1137128
-Sharing to DVD or BluRay http://forums.adobe.com/thread/1137645
-Sharing for Movies http://forums.adobe.com/thread/1051093
-Sharing for Computer http://forums.adobe.com/thread/1058237
Steve's Basic Training Tutorials... steps are the same for several versions
-http://forums.adobe.com/thread/537685
-v11 http://www.amazon.com/Muvipix-Guide-Premiere-Elements-version/dp/1479311200/
FAQ http://forums.adobe.com/community/premiere_elements/premiere_elements_faq
TIPS http://forums.adobe.com/community/premiere_elements/premiere_elements_tips

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    I'm at my wit's end here. My system specs are in my profile.
    My source footage is 1440x1080 30P.
    I've launched AME, and used the templates that closest match my source footage..AME successfully encoded the .m2v files. Again, these are templates that are automatic, and i haven't modified anything that would make Encore burp....
    Playback was flawless on PowerDVD.
    Unfortunately, Encore wants to transcode.
    No matter what project setting i use in Encore, I cannot seem to keep her happy..This is only with BD projects of course.
    With SD projects, the .m2v files don't need transcoding..
    Searches in previous discussions yield no better results....Am i missing something??
    I just can't believe how many hours i've lost with this CS4 package..I've lost more time trying to figure out WHY things don't work, then actually being productive....Sorry about the rant, but his doesn't seem right....AME hanging, Adobe Dynamic Link not working correctly with Encore, Preview on menus not responding etc...I mean, this isn't right..
    I'm spent.

    Did you use automatic for the transcode settings in EN?  Or you used the preset you describe?
    I created a premade .m2v file, so the auto transcode is no good to me.
    I ended up using an Encore preset to transcode the videos..Of course, i changed the bitrate to suit my needs..
    What have you set as the maximum video/audio bitrate for this project?  (Project settings, Advanced tab)
    I have tried all of them...Encore still perceives the assets as untranscoded.
    Try H264 BluRay, 1440x1080i 29,97 high quality and set audio to Dolby
    Yes, but the transcode times go through the roof...I typically have about 2.5 hours of HDV footage...
    Mpeg2 at 18 mbps give me satisfactory results...H264 is not necessary in my case..
    Again, this is only with .m2v files that i use within templates that come with AME.
    I've done extensive encoding in the past. Unless there's an anomoly (like GOP structure) that i'm missing, i'm at a loss.
    As i use the friendly search functions, it's clear to see that I'm not the only one with this issue.
    Thanks to everybody for their patience...

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