Sony Vegas 7 if you do have the bucks (it's the Pro version), Sony Vegas Movie Studio+DVD PLATINUM if you don't have the bucks.
With Vegas you get the built-in Cineform intermediate codec, which allows you to convert the .m2t clips from the HC7 into a visually lossless and easier-to-edit .avi format. (check out Cineform's website for the details).
Caveat: the pro version of Vegas comes with the Cineform codec, I'm not sure if the Movie Studio version comes with the codec, but it DOES capture, and therefore edit the .m2t files. However, the .m2t format is much less desirable to edit because it's basically an mpeg format. You WANT the Cineform codec.
Here's a thought: you can buy the Sony Home Studio PLATINUM version ($119) for capture and editing, and also buy the Cineform product standalone $199 for capture and conversion. Saves you a few dollars. (BUT FIRST, find out if the Home Studio version comes with the built-in Cineform codec.
It's too late tonight for me to find out definitively, but here's a comparison chart:http://www.sonymediasoftware.com/Pr...&FeatureID=8315
- from a Vegas/HDR-HC7 user...