I am working out whether it is worth buying the Connect HD for my HD camera. Are the m2t files of a comparable nature? I am not really sure of the difference between the two...

Connect HD has been replaced with the NEO product line. You are likely looking at the NEO HDV product. The NEO HDV is compatible with all M2T source cameras.

I am a convert, who fought this for a while. but the answer is yes.

From my understanding, M2t is the basic ones and zeros pulled of the tape. It is translated by encoders into the video. It has GOP, which is a group of frames that refer to a "master" frame, to fill in information that is missing from a particular frame. Modern editors are doing a fantastic job of editing HDV "native" footage, but.....

Cineform is an intermediate file, as I understand it. It takes the original ones and zeros shot on HDV, and locks them into each frame. It results in a larger file for the same footage, but the individual frames are not dependent on other frames to provide the image.

As a result, editing and playing requires less horsepower, because less processing is needed. In addition, color correction and transitions can be added without repercussions that can occur in editing "native" HDV. I've been using NeoHDV for about two months now, and it has made things so much easier.

What Chris said. The Cineform files do not ADD any extra image quality or resolution to the original m2t footage off the camera.

But .... once you start doing any editing beyond simple cuts - i.e. editing that requires re-rendering - then the image quality of the m2t files will degrade faster.

Also, you will have smoother editing and less demands for a powerful computer working with cineform files. (But for $500 you could indeed buy a more powerful processor - so the degradation-while-editing argument is the more compelling one in my view).