Where are you getting the MTS files from? If they're from a camera, simply connect it to your computer and use iMovie. If you don't have the full file directory you can try out the free demo of [VoltaicHD|http://www.shedworx.com/voltaichd] and see if it's worth trying.
The step to Handbrake was unnecessary. You could just use MPEG Streamclip from the start. Then you won't be adding extra compressing that degrades the image.
To both of you. Pardon my misread. I thought it said .MOD.
I just tried an .MTS and you are indeed correct. For me Finder wants to use Streamclip as the default but you are both correct it won't open the file. Sorry. I use FCP L&T myself. I know that doesn't help the current situation. Just forget I was here.