PE9 and Canon HF S100 .mts files

I have been searching the forums for a while and looking through the help file trying to find out why the video I shoot with my Canon HF S100 camera is crap after PE9 gets done with it. Granted I am new to all of this, so I am not pointing any fingers at this point and hope this it is just my ignorance. The .mts file is listed in the supported formats of the help menu. I am shooting 1920X1080 and the camera is set to 60i for the frame rate. I am still leaning the lingo and what it all means. The rendering in the timeline looks just as good as the original footage and I add a few transitions, and titles, etc. The render turns out great and i save the file only to watch a bunch of grainy or wavy video.
I tried to just add a video with no editing and save it to a DVD and it is the same poor quality. I guess I assumed that PE9 would select the best output settings based on the source file. I read that previous versions of PE had problems with the mts format, but never used them, so I hope that what I am getting is not the Adobe idea of a supported format.
I apologize in advance if I left out any or all details you need to provide any type of guidance. Thanks for any help.

I read one of your other posts about the red lines above the video in the timeline and don't have any red lines. unless I add affects and don't render.
Not sure why I assumed that I could save to a DVD format and expect the same quality as HD. I thought it was just a space thing and not formating. I am just testing a few different share options. I am wanting to save the files to my computer to gain a little confidence before I start creating BluRay coasters. I used DVD since I could save to a file on my PC instead of the DVD for testing.
I am opening the origional and PE9 video in Windows Media Player.
Thanks for any pointers and I will have to head over to your site once I get a basic video created to get more excited about this process and technology.

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