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what is the best file for editing HD?

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Hi , I am new in the forum and new in the editing world and I am a bit struggling.
I have just bought a Panasonic HDC-HS300 and I am using final cut 5.1 but final cut wouldn't accept M2ts files so I am converting them in mov files.
Now , do I loose quality? Is this the best solution for editing Hd videos?

Is it also normal that it takes 2 hours to convert 10 min video in mov?
I have a Mac OsX version 10.4.11 - Processor 1.9 GHz Power Pc and 1 GB Ram.....is it ok for editing HD and is the Ram enough ?
Any kind of help would be really appreciated! :)
Thanks
 
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Your Mac's Specs
MBP 2.5 Intel Core 2 Duo, 2GB 667 MHz DDR2, 17" Hi-Res Display ; iPhone 3G 2.1
You might try Clip Wrap. It repackages the m2ts file into a mov file without transcoding or loss in quality, and should be pretty fast. The downside is that it costs $49, but that might be worth it. I'm thinking ffmpeg could probably do the same thing for free, but I dont know enough about it.
 
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thanks. At the moment I am using Voltaic to convert M2t files into Mov, but I was wondering whether it is the best solution or maybe I should convert them into something else.
 
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If it is taking 2 hrs to convert a 10 min movie, then Im thinking it must be transcoding it, which would also likely mean a loss in quality. I think anytime you can convert a video without transcoding it, your better off. Also it would be significantly faster, say about 5-10 min for a 3-4 GB File.
 

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