*AVCHD (AVC-HD, AVC HD) video is recorded using the MPEG-4 AVC/H.264 video compression codec. Audio is stored in either compressed form (Dolby AC-3), or uncompressed form (multichannel PCM). Aside from recorded audio and video, AVCHD includes features to improve media presentation: menu navigation, slide shows and subtitles. The menu navigation system is similar to DVD-video, allowing access to individual videos from a common intro screen. Slide shows are prepared from a sequence of AVC still frames, and can be accompanied by a background audio track. Subtitles are used in some camcorders to timestamp the recordings.

Audio, video, subtitle, and ancillary streams are multiplexed together into an MPEG-2 Transport stream. The MPEG-2 transport stream is stored on random-access media as binary files. (In general, the FAT32 filesystem is used for memory cards and HDDs, ISO9660 is used on optical-disc.)

At the file system level, the structure of AVCHD is derived from the Blu-ray Disc specification, but is not identical to it. In particular, known Canon and Panasonic implementations use old-fashioned "8.3" file naming convention, while Blu-ray discs utilize long filenames. Another difference is location of the BDMV folder, which contains media files. On a DVD-based camcorder the BDMV folder is placed at the root level, just like on a Blu-ray disc. On the HDD-based Canon HG10 camcorder the BDMV folder is located in the AVCHD folder, which is placed at the root level.  Solid-state Panasonic and Canon camcorders nest the AVCHD folder inside the PRIVATE folder. Following a standard agreed upon by many still camera manufacturers, solid-state camcorders have a root-level DCIM folder for still images.

AVCHD recordings can be transferred to a computer by connecting the camcorder via the USB connection. Many camcorders can record to removable media like SDHC and Memory Stick cards or DVD discs, which can be directly read on a computer. Copying files from an AVCHD camcorder can be performed much faster than from a tape-based camcorder, because it does not have to be done in realtime.

Just as HDV-editing once demanded an expensive high-end PC, the system requirements for AVCHD editing software currently limits it to powerful desktops. Compared to HDV, AVCHD video compression requires 2-4x the processing power, placing a greater burden on the computer memory and CPU. Older computers, even those that are capable of handling HDV, are often unacceptably slow for editing AVCHD, and can even struggle with smooth playback of AVCHD recordings. Improvements in multi-core computing and graphics processor acceleration is bringing AVCHD playback to mainstream desktops and laptops.

Most AVCHD camcorders released to date record 1080i interlaced video. This creates issues when such video is watched on a computer or when it is rescaled. Computer monitors as well as plasma and LCD televisions are inherently progressive. Watching interlaced video on a progressive display device may produce horizontal ripples known as combing artifacts.

Deinterlacing allows getting rid of combing artifacts, but may reduce vertical resolution. Interlaced video can be deinterlaced in post-production and delivered as progressive, or it can be deinterlaced on playback. All modern flat-panel televisions have a built-in deinterlacing engine, so deinterlacing is not required if video is distributed on DVD or Blu-ray Disc. Watching interlaced video on a computer can be more complicated, but some codecs provide different deinerlacing schemes that can be manually chosen by a viewer.

Some 1080i AVCHD camcorders offer capturing and recording of progressive video, borrowing techniques from television industry. There are two major methods of packaging progressive video into interlaced carrier signal depending on whether a particular video system utilizes 50 Hz or 60 Hz scanning.

50 Hz systems commonly use Progressive segmented frame (PsF) recording scheme, which originates from 2-2 pulldown technique. This scheme is utilized in Canon camcorders for 50 Hz market ("PF25" mode, 25 frame/s) and in some newer Canon camcorders for 60 Hz market ("PF30" mode, 30 frame/s). Such a video can be processed with standard interlaced hardware and software. When handled properly, it retains full vertical resolution.

Another approach has been borrowed from the 60 Hz television system, which uses 2-3 pulldown to broadcast movies. This recording scheme was originally meant to add cinematic feel to interlaced video, but newer editing systems are capable of recognizing the pulldown pattern and recover the original frames. This process is known as inverse telecine or film-mode deinterlacing. Select camcorders from Canon and Panasonic are capable of recording 24 frame/s progressive video using this scheme.

The major downside of recording progressive video within an interlaced stream is that technically video remains interlaced and is detected as interlaced by most editing tools. A videographer has to remember how a particular video was shot, or has to visually check video frames and make a correct decision.

Another disadvantage is that frame rate cannot be higher than half of field rate, this means that shooting 1080p50 or 1080p60 video is not possible with this technique.