I have been using this
to make the ipod video into something useable. It works, but there is something creepy about it. It says it will do mts. It used to be a smallish stand alone, it looks bloated and the interface is "grandiose" for no apparent reason. There are presets, like if you go wmv you can choose 720 or what ever, but I don't think you can customize? I also don't think you can go uncompressed avi, all the avi's I saw were divx or xvid codec. Other than that, it did what I wanted, dropped a stack of ipod vid in and got editable stuff on the other side.
From chucks link
(I have tried to get VLC to do anything but play with results fail every time!)