Ok, So I decided to install the PIXELA software that came with my Canon HF200 on my HP dv9233cl 17" laptop with 2GB RAM VISTA w/SP1.

I recorded a small 50 sec clip at highest resolution/frame rate (24p).

I then connected the camcorder, and copied over the files from camcorder to my laptop. I noticed that it copies two files. A .mts file, and a corresponding .cpi file.

I was able to play the clip using the supplied PIXELA ImageMixer 3 SE Player Ver 5. The playback was choppy. I then used the PIXELA ImageMixer 3 Ver 5 to add a title, then I saved it and exported it back to the camcorder.

I then used Camcorder's component out and AV out to my HDTV. It played flawlessly with titles and everything! So far so good. I was impressed by the quality.

I then took the SDHC card, physically copied over a .mts file from the card to my laptop directly (not through the camcorder), I was able to add it to the ImageMixer library, edit it, and again copy it back to the camcorder to play it flawlessly.

So, in conclusion, you only need to save .mts file to your computer from the SDHC card and you will be fine. You can also save the .cpi file if you need to, but not needed. I still need to figure out exact purpose of .cpi file. That's another time.