What software will convert .MTS files to something that will open in Final Cut Express?

I need a reccomendation for a software that will convert .MTS file to a file type that Final Cut Express HD will recognize.

Thanks for your reply, Martin.
What I'm doing is converting an .MTS file to .mp4 using HandBrake. FinalCut Express opens the .mp4 files (sometimes) but they have pixellation with huge squares all over the screen. I'm guessing it has to do with keyframes. So that's why I'm trying to convert it. When I open the .mp4 file in QuickTime in order to Export as QuickTime Movie I select these options for AIC:
This is what the QT Inspector window shows for each:
mp4 file
mov file
Format
MPEG-4(Perian), 1920x1080, MIllions, AAC, Stereo (LR), 48,000 kHz
16-bit Integer (Little Endian), Stereo (LR), 48,000 kHz, Apple Intermediate Codec, 1440x1080 (1888x1062), Millions
FPS
29.97
30.33
Normal Size
1920 x 1080 pixels
1888x1062 pixels
The problem is, I'm only guessing which settings to use. Is there information somewhere that spells that out? Should I be doing something different when I convert the .MTS file in the first place?

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