720p -> H.264 (x264) video + AAC 128kbps audio:
ffmpeg -i 00001.MTS -threads 3 -y -vcodec libx264 -sameq -acodec libfaac -ab 128k -ar 44100 -ac 2 -s 1280x720 -vpre normal -b 1M output.mp4
720p -> H.264 (x264) video + AAC 128kbps audio:
ffmpeg -i 00001.MTS -threads 3 -y -vcodec libx264 -sameq -acodec libfaac -ab 128k -ar 44100 -ac 2 -s 1280x720 -vpre normal -b 1M output.mp4