Watch out for testing with short HD recordings - I found that they sometimes work OK in editors but then full length HD movies didn't work (probably due to the sheers size i.e. >10GB). I'm sure you found these already but just in case you haven't already seen it there is a thread on our investigations into off the box editing here http://hummy.tv/forum/threads/hdr-fox-t2-file-ts-editing.273/ and the first post will link you to the wiki page with all our test candidates so far and what we found that worked.
In short Freemake won the category for best SD freeware solution, VideoRedo TV Suite H264 is the gold solution (SD & HD) but with a gold price and then the cheaper, functional but quirky Smart Cutter also does SD and HD but please read the Wiki review before deciding on this - personally I liked it because it worked for me but I can also see why many might not like it.
Sorry I'm at work so can't upload anything and on a limited usage plan at home so files like that would soak up my limit. Hopefully someone on an "all you can eat" plan can oblige with a test file.