I am getting alot of artifacts from the colors with my HC1 when I change the saturation/color curves/ or turn it to black and white. When its left alone it looks OK, but when tweaked alot of blocky color artifacts make the image very ugly. Any tips?

Yes. Don't try to correct m2t files. Use an intraframe intermediary.

I just tried that and came back to say nevermind. Thanks though! Works beautifully.