Should I natively edit the .mts or log and transfer?

[Shooter]

What has meaning is that it is night and day differences in the way PP decodes AVCHD to OP1 MXF

I still dont understand the reason for doing so ...or what gains are made by transcoding in Premiere ....when it can edit AVCHD as smooth as butter.

Why take a transcode generational hit as well as the time and disk space it takes?

 

[Igelkott Film]

I still dont understand the reason for doing so ...or what gains are made by transcoding in Premiere ....when it can edit AVCHD as smooth as butter.

Why take a transcode generational hit as well as the time and disk space it takes?

I have this computer:
Time of this report: 6/28/2012, 12:00:41
Machine name: JOBBDATOR-PC
Operating System: Windows 7 Ultimate 64-bit (6.1, Build 7601) Service Pack 1 (7601.win7sp1_gdr.120503-2030)
Language: Swedish (Regional Setting: Swedish)
System Manufacturer: System manufacturer
System Model: System Product Name
BIOS: BIOS Date: 06/15/11 19:16:43 Ver: 08.00.15
Processor: Intel(R) Core(TM) i7 CPU 970 @ 3.20GHz (12 CPUs), ~3.2GHz
Memory: 24576MB RAM
Available OS Memory: 24568MB RAM
Page File: 4492MB used, 44640MB available
Windows Dir: C:\Windows
DirectX Version: DirectX 11
DX Setup Parameters: Not found
User DPI Setting: Using System DPI
System DPI Setting: 96 DPI (100 percent)
DWM DPI Scaling: Disabled
DxDiag Version: 6.01.7601.17514 32bit Unicode

And if I apply Neat noise reduction, three way color and warp stabilizer, and play it in 1/2 res a don't drop frames with MXF but it lags with AVCHD.
Hover scrubbing is just useless with high profile h.264 on my computer.
And MXF can be renamed and stilled logged within prelude, and AVCHD can't.

 

[Nityananda_SCSMath]

What exactly are you transcoding to? Apple Prores 422 in a Op1 MXF with .mxf wrapper? Or Avid DNxHD 145 Op1 MXF with .mxf wrapper? I am looking at MXF for my intermediate workflow as well but would like to know what you are specifically working with that is so effective. Are the files .mov extension or .mxf?