Yes MEP 17can accept AVCHD. Be aware that unless you have a very powerful computer you can get problems with jerky playback in the preview monitor.
You do not need MEP to recognise the camera.
Connect by USB to your computer and use windows explorer to transfer video files from the camera to the computer. If you are recording to Memory stick duo you can remove this from the camera and use a USB card reader (if your comuter does not have a compatible reader) and transer the files to your computer.
Never try using the files direct from the camera, always copy to your computer and use them in your projects from there.
Your PC is unfortunately not powerful enough for AVCHD playback to be smooth.
I would recommend as a minimum and Intel Quad core processor preferably an i5 or i7 at 2.8Ghz or more with 8 - 12Gb of RAM, Windows 7 64bit (32 bit can only use ~3.4Gb of memory) two internal hard drives - one for the OS and programs, the other for the video files storage an ATI or NVidia graphics card with at least 500Mb of RAM.
There are many thinks you can do to gain some small improvements for the jerky playback - if you use the search box on the right and search for 'jerky playback' you will find many suggestions usually to do with cache settings and buffer sizes. Which combination works best depends on your system, it is a case of experimenting to find the best.