Yes, editing AVCHD files, especially on a less able computer, can be trying, so transcoding is still the way to go for many. On the PC, the two most recommended are Cineform and Avid DNxHD. Avid's solution is simply a free codec download while Cineform's has a cost involved.
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"98% of all computer issues can be solved by simply pressing 'F1'."
Steve Brame
creative illusions Productions