Found this handy blog entry explaining how to get AVCHD video taken with our Panasonic Lumex ZS3 into Picasa. After installing the linked software (accepting all defaults), I was able to add video to the library by dragging folders containing .m2ts files into the Picasa file explorer. Importing off the camera went well, too, although the camera froze up the first time I tried it (the second time worked fine).
One significant advantage Picasa has over the bundled PHOTOfunSTUDIO is that importing to a network drive is supported.
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