Thanks! It turns out that was actually the first thing I tried to do, and to my surprise mpeg streamclip would not even take the AVCHD footage at all! Meanwhile here is my solution: I discovered that adobe media encoder actually does a pretty good job at converting the footage, cs5 that is, as I have realized for some reason it does it manages the job at a fraction of the time its predecessor (cs4) takes to do it and the footage looks fine, blended frames but equally that is a compromise I would have undergone with AE at much (and I mean like 2 hrs vs 68 hrs!) render times.
Thanks again!
Greetings from Kenya
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