Working and rendering .mts files from a Panasonic AVCCAM

I have cs4 in Windows Vista.  I'm shooting on a Panasonic 150p the media is memory cards.  Recording mode is PH 180/60I.  In the past I used a Matrox RT2 capture card, but capturing is no longer needed.  The Matrox did take some of the encoding work away from Premiere and it was faster.
That is until I started producing .mts files.  Matrox says they don't support the format.  Encoding is a very slow process.  I'm hoping for an easy answer.  I need to input my files, edit, encode, and then output to DVD's that are NTSC SD 5:4.  In other words, TV standard.  How should I bring those files into Premiere?  Then from that time line, how should it be encoded so that I can create DVD's 5:4, and even an .avi file for Matrox because some cable channels still use video tape.  Any answers?
Chuck

Thanks Jim,  However I was assured by an Adobe rep that the new CS4 was the answer.  Then, opps, well we'll get it with 4.1 which I'm now using.  The even bigger issue is the encoding.  Adobe Encoder takes nice looking video from Premiere and renders it very "soft."  It is even worse in 4.1.  My shots now look like they weren't focused.  Tomorrow, I'm getting 4.1 off the comptuer and going back to 4.0 where the "softness" wasn't as bad.  Today I ran 9 tests of editing and rendering.  When I got to the final .avi, it was not good.  This is a huge dissapoint as I've been with Premiere since 2.2.  I am going to try EDIUS from Grass Valley.  I'm hearing its encoding is much better and it really does deal with the AVCHD generated files.  I've got an email in to an Adobe rep to see if there is any solution before I move on to another editing system.  But thanks for your suggestion.  Chuck

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