1. Convert avchd to mpeg-2
For those who are trying to convert some AVCHD (*.MTS) files to
standard dvd format MPEG-2, here's a good software to do it without
loosing quality.
AVCHD to MPEG2 Converter is an easy-to-use freeware designed to
convert all your AVCHD .MTS .M2TS files from HD camcorders such as
Canon HG-10, Sony HDR-SR12E or Panasonic HDC-SD9 to standard
dvd format MPEG2, AVI, FLV, MP4, MPEG1, MOV, WMV, HD Video
WMV-HD, MPEG2-HD, DivX-HD, Xvid-HD, MPEG4-HD, H.264-HD
or FLV for uploading to YouTube or viewing on iPad, iPod, iPhone, iPod
touch, Apple TV, etc.
It lets you play the AVCHD .MTS .M2TS clips fresh from your camera
that windows media player would otherwise refuse to open. AVCHD to
MPEG2 Converter lets you export/convert them to any format for
playback(iPod, AppleTV, iPhone) or editing (windows movie maker).
What is AVCHD?
AVCHD is a video recording format, developed by Panasonic and Sony,
uses the high quality H.264 codec to compress videos to MPEG-4 format.
MTS, M2TS is the raw file of AVCHD video. Sony, Panasonic, Canon
and other camcorders record in avchd format. Click here to see more
camcorder models that output avchd format.

2. What is MPEG-2?
MPEG-2 is the standard video compression format that is used in digital
broadcasts and DVD movies. This format supports standard compression
resolutions such as 720x480 NTSC, and 720x576 PAL.
With this easy-to-use AVCHD to MPEG2 Converter, you can convert
avchd mts m2ts files to popular video format.
http://www.iorgsoft.com/article/avchd/convert-avchd-to-mpeg-2-dvd-
files/