MTS converter for best quality

[Luka38]

i have a Sony HDR-CX115 and the quality of the video is great, but the problem is that the files are MTS and i have to convert them to AVI because i use premiere pro 2.0 and it doesn't support MTS files, so i tried a couple of converters and converted them into AVI and the quality isn't what i expected. it had many lines and character that were moving looked like on those old commodore games. So maybe i'm doing it wrong because i'm using Prism converter. So is there any other free MTS converter that does the job, or can someone tell me hot to use Prism properly because i'm new to converting and don't understand about encoders, codecs ect.
thx in advance

[Baldrick]

Maybe voltaichd is something for you.

Or else, what settings are you using in prism? video codec, resolution, etc.

[Luka38]

on prism i use:
a/v interleave encoding settings
video compressor=Xvid MPEG-4 Codec

video compression settings
profile @ level=(unrestricted)
encoding type=single pass
target quantizer=1.00
quality preset=real time

and i didn't change anything in video output options
i'm going to try voltaichd later

[kondoa]

Have you tried WinFF?

I don't know if the quality is high enough, though. I have only used it to convert M2TS files from a Panasonic DMC-ZS3 camera to MP4 format.

[Luka38]

im going to try WinFF, and voltaichd has to be purchased so that plan falls flat