I have a JVC HD camcorder that has been recording in UXP or XP (top two bit rates) and when I plug it into my pc and edit the files on pinnacle ultimate studio 14, the results are pixelated when I assumed that they would be really clear. The resulting DVDs are pixelated too, so it doesn't seem to be my video card just displaying it poorely (ATI Radeon HD 5800 series - assume this is capable of HD editing?).

The files seem the same whether imported directly into pinnacle or whether they are copied onto my hard drive by viewing the camcorder as an external hard drive and pasting them over. They are .mts files. Is it that the .mts files are too compressed and need converting before editing or is there something I'm missing. I had assumed that pinnacle would have looked for the files and then when they were imported, they would be of the quality that I had specified but seemingly not.

Huge thanks to all who can help.