Thanks from me to Kadath for also uploading a raw mts file.
Under openSUSE-11.1 Linux, I was able to play it poorly (no audio) with vlc. It played correctly with ffplay
(a player that comes with ffmpeg). And it did not play with mplayer.
More precisely, on openSUSE-11.1: I dragged and dropped it into the kdenlive non-linear-video editor's project tree (place to store input files). I selected it with the "clip monitor" in kdenlive, marked the stop and start position of a portion of it, and dragged that marked portion into the time line. I then selected render, selected my output format, and it rendered properly. Nice video! I could easily add it NOW (ie today) to any video project. No expensive software additions required.
This was on my Dell Studio 15 laptop, with an Intel Dual Core P8400 CPU and 4GB of RAM and an ATI-3450 graphic card. I then took the raw mts file on my very old 32-bit athlon-2800 PC, with 2GB RAM and an old nVidia FX5200 graphics. Again, I dragged it into kdenlive ... etc ... clicked render and it rendered properly. I do note that the raw mts file played properly with ffplay on my old athlon-2800 but the audio was poor. However the final rendered version played good with audio and video on the old athlon-2800 using vlc, mplayer, ... etc ....
Now the very old Athlon 2800+ CPU was much slower than the Dual Core P8400 (and I don't like slow) , but it was stable, and it shows what one can do with good software !
So I am happy to note the free open source Linux application kdenlive http://kdenlive.org/
appears to handle that video format. [Note not all Linux distributions have the updated ffmpeg svn version that makes this possible with an older PC ... for example I've read complaints from Ubuntu users]. I think kdenlive with this sort of success may help to claw back a very small amount of the big edge that Windows and Mac have on NLE in Linux.