I'm a long time (Windows XP) Photoshop user who is just getting into HD video with a Sony SR1 and I'm looking for a software package that natively edits AVCHD and writes it to Blu-ray. For the moment, I can't imagine I will need one of the $600+ packages (I can always upgrade there later). What are my options (I've read a little about Pinnacle, Ulead and Sony's Vegas but ended up more confused than before I started <...sigh>).

Any thoughts? And any thoughts on the need or wisdom of going with a 64bit XP or Vista?

Thanks, Michael