I received .MTS files shot from a Panasonic AF100 1080 30p (from another party), and when I converted them to .mp4 they came to be WAY too high quality to edit in Final Cut Pro 7 on my laptop (2.8 GHz processor, 4 GB RAM). As a result, I'm seeing frames skip in FCP, and this is for the web, so we don't need the files that high def. I wanted to know how to compress it down so I can edit without dropped frames.
No. You converted them into a format FCP doesn't work with...MP4.
The workflow is to use log and transfer and convert them to ProRes. That is what FCP works with. I have a tutorial on how to do this here on the Cow, but am posting from my phone so I can't post the link.
Search for "Shane Ross Log and Transfer tutorial creative cow" on google