Righty then... thought I may aswell do this rather than trying to explain everything.
Full settings for sony vegas/movie studio when editing & rendering .m2ts files
*Please note there's no audio for some reason, probably just something to do woth movie studio not being able to read the audio codec. (you don't have any problems with audio so not an issue Det)
*Right click the image and open in new tab/window to see full size
Step 1: after importing your video, right click on it (in the timeline) and select "properties" - Click "Disable Resample" & uncheck "Maintain Aspect Ratio" then hit OK
Step 2: Project Settings
Above the preview, the small grey box with the arrow is the project settings. Open this. Click the right icon in the box that opens (top of the box) to match the media settings - then select the video file that you've imported.
Make sure the other settings match the picture bellow, especially the "start all new projects..." as this means you can just import, set the video properties settings (above) and start editing.
The settings just under the bottom left of the preview (Project & preview) should now be identical.
Step 3: Cropping
Crop the video to get rid of the small black bars, then save the template. this means on each video you render all you'll have to do is click edit, selct the template and it's done.
Step 4: Rendering
All the settings are in the picture below, first select "MainconceptAVC/AAC(*.mp4), then hit "Custom"
Match the settings as below then rename the template and save it.
*note - don't use constant bit rate as this is bugged, just set the variable bit rates to the same level - this should be the same as the bit-rate you captures at.
Again, saving the template means you just have to hit "render" then "save" for the rest of your videos.
This is the resulting video using all the settings above. (again no audio but thats probably just codec compatibility with movie studio)
Simples!!
YouTube - Test