I have a camera (Panasonic Lumix GF-1) that outputs "AVCHD Lite" files, 720p h264 in a MTS container. I saw this question that said Movie Maker in Windows 7 supports AVCHD...but I just tried, and unfortunately it does not support AVCHD Lite.
Are there any free or inexpensive non-linear video editors (NLE) that can natively handle AVCHD Lite files, without requiring some 3rd party driver? If not, are there any 3rd party drivers that are especially stable? (In my experience they usually have some problems...I got AVCHD Lite loading into VirtualDub using a 3rd party plugin, but it's very slow and sometimes crashes, and seeking takes ages.