The Panasonic Lumix DMC-ZS3 is a compact digital camera that is also known as the Panasonic Lumix DMC-TZ7 in Europe. These two models, the ZS3 and the TZ7, both can record HD video in the AVCHD Lite video format and the Motion JPEG video format. The ZS3 and TZ7 are identical except when it comes to their HD video recording time limits. The main difference is that the Panasonic ZS3 can record continuous video of unlimited length for HD video (no time limit, maximum video length depends on memory card), while the TZ7 has time limits on the length of continuous HD video it can record.
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).