I haven't even received my camera yet but I started playing around with just the software I have. I downloaded a raw m2ts file and converted it to IBM Motion JEPG (1280x720) using my $60 AVS software. It made a file 3 times the size of the original m2ts file. I then uploaded to Vimeo. It's really sharp even at full screen.

conversion test video on Vimeo (http://www.vimeo.com/5620792)


I uploaded a H.264 DivX compatible file that was only 20Mbs for comparison. It's not quite as good but much better than I expected.

http://www.vimeo.com/5629624