I started trying players and found VLC didn't work
i can play m2ts on vlc since the day one.
my sister had a panacsonic hd camcorder which records the videos in m2ts format and wants me to help converting to standard dvd format for her big lcd screen because she have no idea what the bluray is nor hdmi.

m2ts according to
wikipedia is a high definition MPEG-2 Transfer Stream format used in Blu-ray discs and AVCHD. Playing them directly from the camcoder using hdmi to my 40″ Bravia is perfect, but when I transfered the m2ts file to my desktop and play them with vlc … it doesn’t play nice … it was too jerky and way to far for calling it smooth.
After googling it I found some tricks on vlc settings that worth a try. All you have to do is, go to Tools – Preferences in VLC, select Input & Codecs option and select BiDir from the drop down menu for Skip H.264 in-loop deblocking filter. I choose “BiDir” instead of “ALL” because this keeps the quality yet renders smoothly. Save the preference and play the video. The video should be smooth and perfect.