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Thread editing video

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1 editing video
Hello,
Hoping I'm in the right forum to ask about editing video...
I have a bunch of raw footage in various formats that I need to take clips from and assemble a "best of" montage type video. The challenge I've been running into is one of format compatibility with different programs and with youtube, which is one location I want to upload the finished video. 
My raw footage is in .m2p, .MOD, .wmv, .mpg, .avi, .VOB and I've also converted some of it to .flv and .mp4 - I think that's all of them...

Reading on youtube I see they prefer mp4 if I'm not mistaken, and they also recommend re encoding the footage as few times as possible from the raw footage in order to preserve the quality. Well, the challenge I'm finding is that the editing software I have on my computer, ie, Windows Movie Maker and Cubase SX3, neither are compatible with mp4 or with m2p or .VOB or .MOD, which accounts for alot of my raw footage. So for example if I want to take some raw footage into either of these two programs I have to convert to another format first.

My question is this: what format can I convert all my raw footage to that will maintain the greatest degree of quality and also be compatible with my editing software, as well as with youtube when I am ready to export the finished product? I've been toying with a few alternatives but it seems like every variation I have tried has proved to be problematic in one way or another.

Any help with this would be greatly appreciated!
Cheers,
Kenny
2
I have good results with H264