.MTS files are not officially supported by either QuickTime or Windows Media Player, although we have confirmed that some .MTS files will play in Windows Media Player 12 (especially on Windows 7). Unfortunately, these .MTS files that will play in Windows Media Player 12 will not work in InqScribe.
Why? Because InqScribe uses the spec from Windows Media Player 11 to play media files. So, although your .MTS file may play fine in Windows Media Player 12, it does not mean it will play in InqScribe.
Click here for more on InqScribe's supported file types.