Sony .MTS File

QUESTION
Had a Sony Digital 8 camcorder worked fine using Firewire under Premiere 7
Purchased new Sony CX730E Full HD Flash Memory Camcorder
Files downloaded from Memory Card have .MTS extension
I have Premiere Elements 7 running on Intel single processor Windows XP Home
When files loaded to new Project Timeline these have to be rendered first to remove red line before editing
is reasonably possible.
The Movie Format in new camcorder is HD:1920X1080/50p(PS),25p(FX,FH),50i(FX,FH),1440X1080/50i
(HQ,LP)-STD:720X576/50i
I have tried various Video File Formats under AVCHD and others in New Project settings but none
load without the red line.
Having an HD 16:9 screen TV I wish to make best use for quality pictures.
Please advise what settings to use or do I need to upgrade - if so to what (software and/or hardware)?
If I export to DVD do I loose some of the quality or do I need to use Bluray?  I do have the hardware to do this.

Version 7 can work with AVCHD -- but it's a pretty primitive engine. As you've observed, it can't work with it natively, so you have to continually render as you work.
Version 10 would be a good investment if you're going to edit video from that camcorder. It edits AVCHD much more effectively and without the constant rendering.
On the other hand, it often requires a very powerful computer to edit footage from that model of camcorder. We usually recommend a quad core or i7 processor for best performance. An XP machine running a single core Pentium would likely struggle continually with your footage, and the program would perform very sluggishly.
On the other hand, it's a great computer for editing miniDV and Digital8!

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