Massive M2TS File - Cannot Edit in Premiere

[OmegaNemesis28]

I have this 11.2GB file from my Hauppage HDPVR that I recorded.
Adobe Premiere has done a very good job of editing all the files that I've recorded in the past. Hundreds. Without any problems.
Until now.

When I import this video and try to play it in Premiere - it stutters and lags behind the audio very very far.
If I go and play the file like a normal video outside of Premiere - the video plays fine. So it isn't the video file itself thats bad. I just think that Premiere is having trouble using this 11.2GB file. I just can't seem do anything with it.

Even if I take the video, and cut it into a tiny piece on the timeline, it still does it. The timeline keeps the file intact and doesn't physically cut the video. Even if I export the file, it comes out the way Premiere plays it.

Has anyone had this and found away around this limitation?
If not, then is there any recommended free software that I can use to cut the m2ts file in half or into multiple parts and just edit those parts?

[Baldrick]

Try tsmuxer, cut it and save it as a ts or m2ts.