For Standard Definition, it is common knowledge that Premiere edits best in DV AVI.

What would be the equivelent for HD? My capture is in AVCHD and am trying to convert into a more suitable format. I considered DV again, but I do not see an option in Premiere for DV above 720x480 size.

I'm considering H.264 (MP4) or MPEG2. I tried Microsoft AVI, but the filesize is just far too huge (50MB went to 4GB). I want to strike a balance between quality and filesize.