According to this it can:
Technique: Converting .M2T files to .MOV Files (http://www.larryjordan.biz/articles/lj_converting_M2T_mov.html)

but not with Compressor version 3.5 on my Mac Pro. Has anyone converted M2T files directly from Compressor?

I've have more than 100 M2T files from various projects that have been taken off a DR60 drive; the Sony V1U plugin in 'Log and Transfer' only seems to recognize M2T files whilst still on the drive.

Thanks
Greg

Try MPEGStreamclip or see if the demo version of ClipWrap can recognize the files.

Thanks William; both Streamclip and Clipwrap work fine, but I was looking for a single conversion solution that can also remove pulldown.

Clipwrap enables Compressor to recognize the files. That is all it does and why it is so fast. It does it by wrapping the data in the correct file format. It does not process the encoded data to do things like pull down.