Projects settings for AVCHD MTS files in Adobe Premiere Elements 8

Hello,
I have read several discussions already, about importing AVCHD MTS file in Adobe Elements (version 8), but I'm also confused a littlebit, so I would like to confirm if I'm correct.
FYI, I have a Canon Legria HFR26 camera and am using Adobe Premiere Elements 8 (with the latest updates installed).
According to the specs in the Canon instruction manual:
Videos are recorded in high definition using AVCHD specifications
(MPEG-4/H.264 compression).
Audio compression: Dolby Digital 2ch
The camera supports making video's in different format, but I have done it in the default SP format, which results in a resolution of 1440x1080 (50 fields per second, interlaced).
I have copied the video from the camera to my harddisk, and Windows also mentions the video's as AVCHD of 1440x1080 (Bitrate 7672kbps).
The frame rate is 25 frames/second. I assume this is correct for 50i?
So, when I import my video's into Adobe Elements 8, I select the following projects settings:
PAL, AVCHD, HD 1080i 25
Because the description matches my video files:
- For editing with 1440x1080i AVCHD camcorders.
- 16:9 interlaced HD video at 25 frames per second.
- 48kHz audio.
The video's are imported correctly and I can play them. However, as soon as I drop a video on the timeline, Adobe immediately starts background rendering the video (a red line appears on the timeline).
What I understand from some discussions, is that this shouldn't happen, because the video format doesn't match the project settings. On the other hand, I have also read that for Adobe Elements 8 this is normal behaviour and it always start background rendering AVCHD video's.
Is this expected behaviour or should I chance my projects settings or maybe even convert my video files to a different format?
Thanks,
Michiel

The ability to work natively with AVCHD files was not added until version 10, Michiel. So you'll still have to render while you work in version 8.

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