Best preferences for converting MTS files to FCE-friendly format

My specs: G5 PowerPC, FCE 4.0, Mac OS 10.5.8.

Just purchased a copy of VoltaicHD. A few questions:

What are the best settings to convert my MTS files to a format I can edit in Final Cut Express? Should I leave the default settings? When I did and converted to Quicktime, I had to render the file in the FCE timeline. Thanks!

Lance

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