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Converting .mts To H.264, Etc.



i have the latest toast 9 and a sony hdr tg1. i have a few questions:


1. when i make a bluray disc by dragging the .mts files and burn them onto a dvd, is there any compression/loss of data? is the quality as good as the original .mts?


2. when i drag the .mts file to the conversion window and try to convert to a h.264 and use all the maximum settings (key frame every frame, data rate about 16 Mbs, high quality encoder), the finish conversion is filled with jaggies and very interlaced. when i use imovie8 and use it to convert, the quality is great.


would appreciate any help.


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