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I post this tutorial because I had tons of problems editing .m2ts files with Windows live Movie Maker.
All of the things posted on this tutorial are free (Exept for the HD Pvr)
1. You need to have the software that comes with the HD pvr (Total Media Extreme) and capture your video as usual
IN .M2TS FILES
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2. You need to download a free software called iWisoft Free Video Converter.
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3. You need to change the .m2ts files into .wmv HD files with the converter
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4. Now you can upload them to windows live movie maker and edit them like you would normally do.
I hope this helps and if you need more informations feel free to ask!
Sorry for my bad english, I'm french,
I made a little gameplay on my youtube to show you the quality [ame]
https://www.youtube.com/watch?v=NyYyFXXJE6Y[/ame]