Occasionally my students come in having shot something on "Dad's new camcorder" and are dissappointed to find that PP CS3 doesn't like the AVCHD footage. There are a few converters out there for reasonable money, but in a lot of cases our guys don't have the dosh or don't have a credit card.
Anyway, I came across a nice little converter for free that does a pretty good job.
I know endorsements are against the forum policy so do PM me if you'd like the link. it wasn't a "first page of google hit", so if it's something you could use, it might save you a few minutes of searching.
There's no watermark, just a web pop-up to the companies website at the end of the conversion.
Thanks for trying to do the right thing, Matt. But the rule is meant to prevent endorsing commercial products from which you yourself would profit.
If you find a tool that does the job for you, at any price, feel free to endorse it. There are many Pr users who put getting the job done ahead of cost concerns.
Please post the solution that you found so others might benefit.
You'll find the tool at http://www.koyotesoft.com/indexEn.html then click "Free HD Converter 1.6 u" in the left-hand menu.
During the install, you can UNTICK the bundled tools, Yahoo Toolbar and some shopping comparison toolbar, and it still installs no problem.
A post-install scan found nothing in the malware department.