A .M2TS file is a Sony high definition video file type, and M2TS files are raw AVCHD videos recorded using Sony's camcorders, such as the HDR-SR1 and HDR-SR5 models. However, most MP4 players like iPod iPhone PSP Zune iPad, etc. do not support M2TS files. You need to convert M2TS to MP4 MPEG4 format if you want to play your camera video M2TS files on those MP4 players. Here is an easy guide to show you how to convert M2TS to MP4.
The tool we will need to convert M2TS to MP4:
A M2TS to MP4 Converter – Video Converter Ultimate
Video Converter Ultimate is a versatile and amazing M2TS to MP4 Converter software that convert M2TS to MP4 and to other file formats in one click. Plus, it also can convert other Video Audio HD Video files with smart video editing functions, and it's fully compatible with Windows 7.
Free Download Video Converter, install and run it on your PC, transfer the M2TS video from your AVCHD video camera to your computer, then click "File" in menu list to load M2TS files from your computer, the main interface of it will be present on the screen:

Select MP4 from the output formats list in "Profile" drop-down list. the default settings is recommended to use for novices, you also can configure output options by clicking the "Advanced..." button. then you can click "Output" drop-down list to specify the output directory to store your converted M2TS video files.

Note: Video edit function such as trimming, clipping, adding effect, etc. is available and optional in Video Converter, so that you can make personalized video clips.
Click "Convert" to begin the M2TS to MPEG4 conversion. After conversion finished, you can click "Open Output" to find your converted m2ts videos quickly.
That's it, you can see how easy it is to convert M2TS to MPEG4 with Video Converter. Now just connect your MP4 player with computer, sync the converted m2ts to your device and enjoy M2TS movies.