iMovie Import Grey-out

Hi Folks,

I am new to Mac and I just converted AVCHD files using Tipard M2ts Converter. I used to Apple InterMediate Codec(AIC) (*.mov) as the profile:

Once coverted I dropped over the imovie app and it did not import properly. I also Imported from the file tab. The audio came through on imovie, however the video did not. What am I doing wrong?

Also, What is the best format to convert to that would equal or surpass the Full HD 1080 , 1920x1080i, HD?

Please advise,

Chad