The Media Players classic would not play the files at all on my system - black screen. It did recognize the M2TS files, but would not play them. I have also tried to play them on Media Player 11 (Vista business 32bit) with the Registry patch for TS files installed, and that version played the files, but they were very jerky - simply couldn't keep up with 1080i screen changes. I also tried to play them on Corell's Win DVD player without any luck. That program couldn't even recognize the M2TS files. They advertise their product will play them, and I have read reviews from others that claim the WIN DVD will play them in good fashion, but, again, not on my system. So far the only player I have found that will play the files is the Cyberlink Power DVD 9, and, that program does an excellent job. However it costs $70. I am in he process of trying the Sage TV package that Hauppauge suggest as a third party vendor.
After experiencing the frustration of recording and playback via the new Blu Ray std, I have a new found respect for how difficult it must be to market software for this task. And, evidently there must be a distinct difference in methodology between Arcsoft, and CyberLink and Media Player, Win DVD, and Sage TV products. They all claim they will play the files, but the latter three need more horsepower than the former two. My stytem has the T7200 2GHZ Core 2 Duo processor, The Sage TV, and (evidently) the Media Player and Correll Win DVD require a 3GHZ processor or better. My new found respect is that the ArcSoftware isn't so bad and would in fact be great, like Cyberlink Power DVD, if they had the ability to control the brightness etc.
Finally it might be interesting to some to know that the Media player 11 with the TS file patch installed also lost control of Brightness, contrast, saturation etc, only when playing the TS files.
Thanks nextoo and ak3883