I've just converted a whole load of M2TS files (which has now expanded to 82Gb from about 10Gb!), and whilst that took some time, I checked in media player that the sound worked.
It does, no problem.

So I started up PProCS3, loaded up just a small clip with the correct preset (1440x1080 pal), the clip plays back nice and smoothly, but the audio is now mono, and I can't actually see a waveform in the timeline. More importantly, I cant hear ANYTHING !.

Seems very odd to me.

You need a different audio filter to decode your M2TS files. Try AC3Filter from here Free-Codecs.com :: Download AC3 Filter 1.51a : AC3 Filter is a DirectShow filter for AC3 decoding (http://www.free-codecs.com/download/ac3_filter.htm), and reconvert you source. Like the AVI doesn't have stereo PCM audio in it as the correct decoder wasn't installed.

You need a different audio filter to decode your M2TS files. Try AC3Filter from here Free-Codecs.com :: Download AC3 Filter 1.51a : AC3 Filter is a DirectShow filter for AC3 decoding (http://www.free-codecs.com/download/ac3_filter.htm), and reconvert you source. Like the AVI doesn't have stereo PCM audio in it as the correct decoder wasn't installed.

Thanks David.
Guess thats good and bad news rolled into one !
Encoding time again !!!

Ah, actually after installing that, I also thought I'd checkout what Audio Hardware premiere was using.... It was using my BMI 'Decklink' instead of my Emu card !
Doesn't seem like I need to convert it again, I exported the audio into my audio app, and its still stereo...
heh
(further inspection - ie: using my eyes, it says 5.1 in premiere)

er, dont understand but thats ok with me as it saves 24 hours of encoding !