Hmmmm, OK, I downloaded MPEG Streamclip 1.8 (Aaron's link) and imported the VIDEO_TS folder and told it to Yes, fix the timecode breaks. I played it and it looks and sounds fine (in sync), but now what? Export to DV? Demux to M2V and AC3? (I know it is AC3, 256 kbps). Right now I'm trying Export to DV and it's making one big ass file! The original VIDEO_TS folder is 3.77 GB and so far this export is a bit over 2 GB and only 10% done (which leads me to think the end result will be 20 GB!). Does that sound right or should I be doing the second option to Demux to M2V and AC3?
(Sorry for the perhaps stupid questions, but this could lead to a tutorial if I figure this out.

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