I just bought myself a Sony HandyCAM DVD201 which burns to DVD-RW. The format are Mpeg-2

I was wondering if Pinnacle was the best software to import Mpeg-2, edit them by adding effect, tracks and slow motion. Adobe Premiere Element is made for DV which will be a pain to convert all my movies to aVI to convert them.

Which software do you recomment to modify those Mpeg-2 and doing a decent job on adding effect and all? Anyone else is working on mpeg2 m like me that could perhaps help me into buying the right software to work on my movie editing?

Any comment, suggestion or recommandation will be appreciated