How do I get to play my Panosonic HDC-SD60 videos on PowerDirector?

I just got the Panosonic HDC-SD60 camcorder, and PowerDirector v7 doesn't even recognize the files, but when I open a new file on my windows hp computer, it recognizes them. Apparently the file types are all .mts, except one that has .scn. I've been looking at video converters, but they all rip me off. I have Super C converter, but it doesn,t even regognize the files! The files do, however, work on the video editor that came with the camcorder, but it doesn't work for me because the editing isn't good enough. All I want to know is how to edit my HD video files in HD on the CyberLink PowerDirector, then upload them to youtube in HD. And I would like every answer to be completely free (I don,t want to pay for any video converters or anything like that), unless that's the only way to do it.