Sony HX5V and PMB - How best to back up videos?

Just want to get some suggestions on backing up pictures and videos taken with my Sony HX5V.

PMB gives the option of creating a separate disc just containing videos (AVCHD or DVD discs) but I prefer keeping the related pictures with the related videos together on one disc. So I created a test data disc with some pictures and a video. I pop the DVD in the PC and it autoran and brought up a browser page showing all the files. The pictures display fine when clicked on, however, when clicking on the video, I got a window asking to Run or Save. Running it won't play it in PMB (tries to play in Windows Media Player but it's choppy). I saved it and went into the properties of the file to see if I could get it to open with PMB. I went to the PMB folder under Program Files but I can't figure out what to click on (don't see a file that sounds like it's a player for PMB). So then is my only option to save the videos under My Pictures and then go to with PMB to play it?

I'd like to know what other HX5V users do who shoot videos in AVCHD mode. Do you convert all your videos to lower quality .wmv and burn them together with pictures as data disc so the videos can be easily played with other players or on another PC without PMB software? Or do you create separate DVD discs (lower quality but can play on regular DVD player or PC without PMB software) or create AVCHD discs that preserve the resolution but you need the PMB software or a Sony Blu-ray player or Playstation 3?