I have an AG AC130AP and shot a wedding at 720 60p. Imported the files into Premier CS5.5 sequence.
The footage is very blocky in parts that are over exposed. 
Viewing the shot in VLC it is clear with no artifacts. Using Adobe Media Encoder I encoded it as Quick Time and imported into Premier and there were no blocky artifacts, but the image size was smaller.
Is the best workflow to transcode the MTS files before importing to Premier? If so, what is the best setting?
Thanks for sharing.