If your mac cannot handle avchd then use ProRess or have a look at NeoScene from Cineform (which Jeff already pointed out, by the way i love NeoScene: visible lossless).
But if your mac can handle avchd then edit in AVCHD that is what CS5 is capable off. Export is not unstable and with a cerified graphicscard you can edit avchd in realtime with unlimited effects with unlimited tracks.
I do not think this laptop is very well suite for CS5.
If you want to edit AVCHD in a descent way with Production Premium get a desktop with an i7 930, 12 gig of ram, a certified Grafics card for MPE and at least 3 HDD. But that’s me…
CS4 is not very good in handeling large project. Advice here chop your large project into smaller projects like one to two hours.
When finished you can bring them together in Encore.
Trialversion does not support anything related to mpeg.
If there is no preset you can always make it yourself, but there is a 1080 25p preset for avchd.