Thanks for your mail and glad you now have WMP up and running and playing your videos.
I use Format Factory for some of my conversion work. It works very well, is free and converts TS files as well as many others:
I would suggest exporting your TS file to high quality MP4: (see screenshot)
Once you select MP4, click on the Output Settings ( See Screenshot)
Then in the video encode dropdown select AVC (H264) and in the Quality Settings select High Quality and Size ( see screenshot)
Once this is done then just click on the start button in the main toolbar:
This file format should be really good quality when mixed and rendered in the YouTube settings in trakAxPC.
I hope this helps and please do not hesitate to contact me.