Last night I tried a few experiments. All failed to produce results any better than the PD10 direct upload to YouTube.
When I saved to MP4 then the resulting files were nowhere near as good as the original AVCHD footage.
Then I saved to AVCHD format and PD10 hung when trying to view or edit the produced file and it was complete garbage in both WMP and VLC.
Not really very good at all.
Luckily for me I suppose, the video exported to YouTube isn’t that bad, so I won’t bother with this anymore, it’s just wasting my time.