I need to use virtualdub to stabilize some video using deshaker. However, I need to convert my AVCHD file (m2ts) to AVI so virtualdub can read it. What's the easiest way of doing this?

i did see on another post that VoltaicHD will work, but unfortunately this isn't free. Does anyone know of a free (or low cost) product that will also work?

if you have a Cyberlink PDVD7 decoding filter, just use AVIsynth's Directshow input and it can decode it and automatically de-interlace the file.

stephen you can use this chain (very powerful):

mts-> DgAVC (freeware powerful tool that permit you to frameserve avc file to avisynth) -> avisynth+deinterlacer script (if you need) -> virtualdub+intermediate loseless codec (blackmagic, mjpeg, cineform...) and you obtain your avi loseless that you can give to your preferred editing software.

ciao!