Video Editing Software

We recently got a Panasonic M/N HDC-SD1PP video camera at work. It came with Panasonic's HDWriter software, but it doesn't have overdubbing capabilities; just scene-splitting and -merging. The camera saves files in AVCHD format using a *.MTS file extension.

I'm looking for a demo I can download, then we can buy it later if we like. I know that Media Player, Quicktime and Windows Movie Maker don't work with these files. Anyone have a suggestion?

 

Nero 7 Ultra Edition Enhanced is supposed to have the capability of editing AVCHD.
http://www.nero.com/nero7/enu/AVCHD_Authoring_and_Playback.html
Sony makes a software that will also but it is $699.00 rolleyes