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how to edit avchd videos shot with Sony Handycam?

I just bought a Sony Handycam HDR-XR500V to shoot videos and edit them in Final Cut Studio 2 on my macbook but the video convertors I use (SUPER and Compressor) couldn’t convert the video and the included software (which I installed in Bootcamp) couldn’t convert it to 1080p, which would be a waste because I bought a camera that could shoot 1080p video but the included software can’t convert it. Is there a video converter that can convert AVCHD videos for free? If anyone else has this camera or a similar one, could you help me?

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