I know that it has been some time since the post I am replying to but here is my work flow.
I import my mts(AVCHD)files shot with a Canon Vixia H200 into Premiere Pro CS4. Once I edit the sequence the way I want then I use the Dynamic link function to send them to Encore. I have had no problems with the workflow. The transcoding in Encore takes some time (up to 2-3hours). Hope this helps