UT Video Codec settings for AVCHD .mts transcoding

Howdy,
Been trying for a while to track down a jittery playback issue (as if frames are randomly held or skipped) when editing .mts files.
Jittery in PPcc and also after exporting to whatever... and especially using Youtube and Vimeo export presets.
VLC media player plays the .mts source files smoothly right off the SD card or HDD/SSD... most of the time, occasionally there is a hiccup but nothing like in PP.
The clips that do this are pretty much all of the panning clips and shot in either 24fps or 60fps 1080p.
I have seen this now on 2 different systems with different collections of .mts footage out of 2 different cameras.
Mine is a PC (running WIN7 i7 3770K 3.5Ghz, 16GB, GTX 660) and the other is a more powerful Mac with 32GB RAM (accustomed to smoothly dealing with RED footage).
I came across an Adobe suggestion to convert to a UTVideo codec ( http://helpx.adobe.com/premiere-pro/kb/audio-video-glitches-avchd.html#id_49687 ) to deal with AVCHD... but it really didn't give much helpful info beyond the link to where it could be downloaded.
I tried the suggestion, downloaded the codec suite, made a preset in Media Encoder and transcoded, but it plays even worse than the AVCHD does natively (VLC doesn't recognize that codec for testing)
Does anyone have any suggestions on the best settings for the UT Video transcoding and/or hardware/software settings for the smoothest PP playback of .mts clips? I see in the forums here and elsewhere that lots of folks have various problems working with .mts footage in PP... I am hoping there is a functional solution beyond what I have unsuccessfully tried:
setting playback to 1/4 or 1/2
rendering the sequance/timeline
transcoding to .mp4/DNxHD
clearing render files
maximizing ram for PP usage
closing all other apps
importing the whole 'private' folder from the SD card (which I can't seem to get PP to recognize anyway, it only will import the individual .mts files as far as I can tell)
changed power options
turbo boost for the i7 on or off
and some other trial-and-errors gleaned from the forums that I can't recall at the moment
Any suggestions for what to try next or the proper settings for using the UT Video codec would be GREATLY appreciated.
Thanks/Cheers!

Thanks Fuzzy!
Great article and it led to some more testing with a couple different lens, pan speeds, shutter speeds and frame rate combos... but still I am not finding anything definitive, I still get random, choppy/juddery playback (never seems to occur in the same place each time).
I have the frame drop indicator on and it says all is good (no dropped frames).
VLC and PotPlayer tend to play the clips off the card just fine, but does once in a while skip... a data transfer problem? I have played off the SD card and SSD main drive and my media HDD.
Caught a recent thread with others having sudden choppy playback, might be related? http://forums.adobe.com/message/5938794#5938794
I have PPro CC 7.2.0 (46)
But the suggestion to clear cache and reset preferences didn't seem to make a difference on my machine.
Still ???
Going to try playing the same clips on a friends SUPER Mac and see what happens... although he sees the same thing with the .mts footage he already has.
Onward!

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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).
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-rwx------ 1 asdf asdf 1.6G Aug 10 20:05 00002.MTS*
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Channel(s) : 2 channels
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Bit depth : 16 bits
Compression mode : Lossy
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Text
ID : 4608 (0x1200)
Menu ID : 1 (0x1)
Format : PGS
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I have handbrake, ffmpeg, etc installed but I really don't understand this.

skottish wrote:I'm curious, at that big of a drop how's the quality?
Not discernably better or worse. Certianly acceptable for my purposes, no surprises.
skottish wrote:What's the output of mediainfo on the new file?
General
Unique ID : 215024101460296907370475472157250113814 (0xA1C422B52828C4B6AB74501A60E35116)
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Default : Yes
Forced : No
Audio
ID : 2
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Format settings, Endianness : Big
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Channel positions : Front: L R
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Compression mode : Lossy
Stream size : 15.4 MiB (4%)
Default : Yes
Forced : No
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ID : 3
Format : PGS
Codec ID : S_HDMV/PGS
Codec ID/Info : The same subtitle format used on BDs/HD-DVDs
Default : Yes
Forced : No

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Yup,
It costs but it's supposed to be very worth it on saved time and trouble.
http://www.clipwrap.com
From the website:
rewraps - doesn't transcode
ClipWrap rewraps the video samples from your existing m2t, mts, m2ts files without re-encoding them. This means blazingly fast convert speeds and no image degradation.
Transcodes too!
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figure 1
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figure 2
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figure 3
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figure 4
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figure 5
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figure 6
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Dennis
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FCE does not encode Flash. You need third party software.
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QuickTime 7 has some "flaws". I hope they are addressed in updates.
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