Windows 7: windows live movie maker stutter

I'm not sure if this is the right forum for my problem or not. I'll just crash ahead
and see what happens.

Using the latest version of Windows Live Movie Maker with .mts files. When
editing the download files everything looks and sounds great. The problem
is when the movie is saved in .wmv format I get stuttering between scenes,
almost like a sync problem. I've adjusted the fps from 5 to 60 instead of the
default 30. The lower fps seems to help but the panning is jerkey. My video
card is a ATI HD5700 series with all updates.

thanks
mike