Do i use mp4 or mpeg2 for editing ?

I have a Canon XA30, which outputs files in AVCHD or MP4 format. My editing software is Vegas Pro 13. If my goal is to produce a DVD (which will be playable in most DVD players) --- do I have to convert the MP4 files to Mpeg-2 before editing in Vegas? If so.. what is the best way to do that?
Any feedback/comments on this will be greatly appreciated... thank you!
 
codecs for play back on dvd are different than codecs for editing
you edit with one type of audiovideo file and then convert to another type for that dvd

I edit my stuff in apple prores
 
If your computer can handle it, I would edit in whatever format it was shot in. But that's usually not possible, so editing by proxy is a common thing. I don't remember the name of it, but can anyone else remember that free codec Blackmagic released a few years back? Does it still exist?
 
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