There are many applications that will encode your video into blu-ray compatable AVC. One of the best, and least expensive (its free!) is x264. The easiest way to install and use x264 is by installing MeGUI and letting it update to the latest x264. (MeGUI requires AVISynth installed.)

Downloads:

• MeGUI 0.2.6.1046
• .net framework 2.0 (if you don't already have it installed)

Install MeGUI

Once you've downloaded, go ahead and double-click the installer to start the setup. Use the standard Destination Folder:

Once the installation is complete, you'll get a standard 'Installation Complete' prompt:

Just hit 'Close' to exit out of the installer.

Dotnet 2 required

If you try to run it (under MeGUI->MeGUI Modern Media Encoder) and you don't have .net 2 installed, you'll get one of the following error messages:

or:

If this is the case, download and install the .net 2.0 framework from the link above.

Update MeGUI

Once its installed, and you re-run MeGUI, you'll be asked to update to the latest versions:

Click on 'Yes', and the MeGUI Updater will pop up:

Just click on 'Update' to start updating. When its complete, you'll see the profile Importer:

Select all of the profile's to import, and click on 'Import':

Do the same for the audio profiles and the XviD profiles.

When the updates and imports are all done, you'll be asked to restart MeGUI. Click 'Yes' to restart, and you'll see MeGUI again:

Now you're all ready to encode some videos!