SO I am confused as to some of the posts I have read about the M2T file.

Do I need to convert this using some converter before I start using them in video projects, or can I just keep renaming them to MPG like I have been doing?

Neither. Most current NLEs handle m2t files natively and directly. Except Windows Movie Maker.

Which NLE are you using?

First, I am sorry, but I not know what an NLE is?

But what I am doing is I am using AVS4YOU to quickly downsize the raw footage in batch so that I can get it on Vimeo for the client to see the same day. AVS4YOU does not recognize the M2T files.

Te final project will be Premier Elements.

I asked the question, because there are quite a few threads about converting, but I was not able to figure out why?

NLE is your Non Linear Editor, which is what Premiere Elements is. Why don't you just capture into PE and then go from there? It might be a bit slower than your other software, but you should be able to quickly capture and then convert into something you can put onto Vimeo.

Also, if you don't mind capturing twice (or if you are only going to edit in SD, not HDV, and know you will never need HD) you could downconvert upon capture, which will result in a DV AVI, which should be easily read by any software.

Edit: it looks like AVS4YOU is the website; their editor is called AVS Video Editor and their converter specifically says it handles m2t files:

http://onlinehelp.avs4you.com/AVS-Video-Converter6/Features/Converting/ConversionTips/SupportedFormats.aspx

Thanks for the info.
I think I had an old version, I have run the update and now it will recognize them.

For what it does and for the price, AVS has always been a rock-star!

Why don't you just capture into PE and then go from there? It might be a bit slower than your other software, but you should be able to quickly capture and then convert into something you can put onto Vimeo.

This project I am working on is a 20 week project and each Tuesday I go out and get about 30 minutes of footage.

This past week I got 23 short clips.

Being able to batch and get on Vimeo in a very quick process for the client to view is essential.

Right now I am using HDV Split from Camera to HD, AVS4YOU to convert for Vimeo and Vimeo's bulk uploader to upload.

I only have to touch the project 3 times and I can use a low grade laptop to do this, while still getting work dome on my main machine.