Hey, Josh, I see your frustration but take a deep breath…is gonna be all right. The camera comes with its own software which lets you save the m2t files and then import them in either Vegas or Premiere Pro CS4, for example and do your editing. If you want to downsize to SD you can do it. It will save the clip as mpeg2 (which allows you to import and hear the audio — AVI will not import audio –) If you solved your problem good…if not you can write back.
Be cool