Auto Gordian Knot will convert directly from .ts to .avi. It's absolute simplicity to use and you can specify the target size of the resulting .avi file so they will always fit on your media. For example, if you're recording a 6-part series, you can specify that each avi file will be just one sixth of a DVD. The results are high quality. You can also specify a target quality, if you prefer.
Having said that, I wouldn't seriously store recordings without removing adverts and start/end padding first. There are certainly ways of doing this without cost, but I use VideoRedo and would wholeheartedly recommend spending 30 for the Plus version (rather than the more expensive TV Suite). Workflow then is:
1) Open .ts file in VideoRedo. Remove ads and padding.
2) Save edited recording as mpg.
3) Convert mpg to avi using Auto GK.
Steps 1/2 typically take about 10 minutes for something like a channel 5 movie. Speed of step 3 depends on your PC, but on my (pretty average dual core) laptop it typically takes about 125% of the running time of the recording. I usually programme a batch of conversions to run overnight.
One question - why do you want to convert to avi
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