How To Treat T2 Hyperintense Signal?

I am a 39yo female w/ knee pain. 16months now, with no history or memory of an injury. xray & mri a year ago showed nothing wrong. chiropractor assisted in easing swelling & pain, but not resolved. New xray may 2011 reports 'mild degen. arthritis with some bone spurs.' MRI taken june 2011 reports 'abnormal appearance to the medial meniscus. T2 hyperintense signal along superior aspect of the midsector and posterior horn, connecting to articular surface and suspicious for small tear. Lateral meniscus intact. Small joint effusion. '
So, what is T2 yperintense signal, what is the midsector and posterior horn portion of the knee or meniscus, and what is joint effusion. GP's first response was "physical therapy and ice". I've been doing that for over a year now with no results. What would the surgical response to this be? Thanks!