You can use either AME or Prelude to transcode files. Let us know if you need help with that.
Kevin, could you simply explain the workflow of this using AME? Are you able directly use AME or do you have to bring the .mts file in through a Premiere sequence. '
Open prelude, select your AVCHD files. Select folder to send them to, check transcode option and set what codec details you want, hit go....
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coastalmedia's response is quite accurate (you can do very similar in AME also without going into PrPro) ... with one caveat: you need to be either on a Mac or have purchased a licensed set of the ProRes codecs for a Windows machine. Apple doth NOT let Windows machines do anything but read ProRes ... unless you've paid major bucks for a license.
If you're a Windows user, the DNxHD options are considered the equivalent of the ProRes ones by many.