The Panasonic Lumix DMC-ZS3 (also known as DMC-TZ7) can record 720p HD video in the AVCHD Lite video format (1280 x 720), with the ".mts" file extension, which has no time limit on video length and which has file sizes much smaller than the alternative Motion JPEG format.

To edit AVCHD Lite video (.mts), it is easier to first convert a copy of the video to an AVI file (.avi). This is easier because there are not a lot of software options available to edit ".mts" files, and some computers may not be able to play back ".mts" files very smoothly.

For some computers, converting AVCHD Lite video from an MTS file to an AVI file can give smoother and sharper video playback, even if you do not intend to edit the video.

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