Transcode .MTS AVCHD for use in PP CS3

Slightly odd question but here goes.
I have a number of .MTS AVCHD files I want to edit in PP CS3 on my work computer. The files are mainly 1920x1080 50i but one is 1440x1080 50i, all with A52 Audio (akaAC3)(a52): I didn't do the recording!
CS3 won't allow me to import in this format so I need to transcode the files, keeping maximum quality. Unfortunately I am a cash strapped student so can't afford to buy professional transcoding software. I can however install a trial PP CS 5.5 on my home computer and use that if it will work well, then move the video files back to work (my work computer only runs win XP. Vista or 7 are system requirements and prevent CS 5.5 install).
Essentially what is the best free way to transcode these files and what format should they go to? CS5.5 trial on my home computer or other freeware? I have searched around the forum and the web throughly but can't find many useful answers that don't contradict each other.
Cheers
Nick

Most converters will do a horrible job and convert to a format still difficult to edit.
Don't waist your money on AVCHD Upshift (as mentioned in John's link).
Best thing and i does not come free is Cineform.
It will give you visual lossless footage, easy to edit.
Download the trial.
If its a one time thing only convert all your footage in the trial periode.
After that you will only need the neoplayer from Cineform (download) to edit in Premiere. You cannot export to Cineform, but that should not be a problem.
There are plenty of other formats.
You do need to install the ac3 codec first (just coping the .dll to Premiere wont do it) otherwise you will not be able to convert the files with Cineform.

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function(){return A.apply(null,[this].concat($A(arguments)))}
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Name der fehlerhaften Anwendung: PhotoshopElementsOrganizer.exe, Version: 11.0.0.0, Zeitstempel: 0x505e9f67
Name des fehlerhaften Moduls: msvcrt.dll, Version: 7.0.9600.16384, Zeitstempel: 0x52158ff5
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Vollständiger Name des fehlerhaften Pakets:
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Hi,
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When you said that you unisntall all other codec, what do you mean?
Codec Inside element software?
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System
Provider
[ Name]
Application Error
EventID
1000
[ Qualifiers]
0
Level
2
Task
100
Keywords
0x80000000000000
TimeCreated
[ SystemTime]
2014-08-31T19:36:04.000000000Z
EventRecordID
244366
Channel
Application
Computer
Ordi-Denis
Security
EventData
PhotoshopElementsOrganizer.exe
11.0.0.0
503fdd1d
MSACM32.dll
6.1.7600.16385
4a5bda4e
c0000005
00004d91
1634
01cfc552c927dce5
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C:\Windows\system32\MSACM32.dll
0b097e53-3146-11e4-a14e-bcaec51a14f7
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