A quick test of the AVCHD mode in the Sony DSC-TX7. The menus suggest that you use MP4 for online and AVCHD for things like playing directly to HDTV through HDMI, mastering Blu Ray, etc.
Upload of this video was nearly instantaneous (25MB/25MB FIOS), initial processing by Youtube was less than 10 minutes, and around 10 more until it was available in all resolutions. It is obvious that Youtube should have no trouble receiving this kind of video.
UPDATE: This is not the highest resolution for AVCHD in this camera, it was set to 1440x1080 instead of 1920x1080. I guess I’ll have to shoot it again later.