Originally Posted by TomInJax

You don't "need" an HD DVD or Blu-Ray burner to make 1080 discs. But you need to write the media in the proper format for the high definition DVD player to recognize it.

I regularly make HD DVDs from my .MTS files using Pinnacle 12, that play on my HD DVD player. I believe that you can do the same with a Blu-Ray DVD player (write/burn Blu-Ray format to a dual-layer DVD). I finally tried this method and took a disc to Best-Buy and it didn't work. I tried two players and neither would recognize the Blu-Ray format, dual layer DVD. I burned an ISO with Sony Vegas and used Nero to burn it to a dual layer DVD (+R). Failure!!! Anyone that can make this work, let me know how. (Aside from using a blue ray media/disc) Will a Blu-Ray burner work if it is written to a dual-layer everyday DVD?

I also burn 720 X 480i, wide-screen format to a standard DVD, and when played on an up-converting DVD player is isn't too bad! I use Sony Vegas to do this (since it is faster and a more stable program).

So here is a summary of DVD formats that you can burn MTS (AVCHD) files to:

• HD DVD on HD DVD discs: You need a burner that can burn HD DVD discs and you will need to find a source for the media (HD DVD discs). The DVD burners are available, but scarce. The media might be even scarcer since Blu-Ray won the HD war. You can use ULead or Pinnacle to burn HD DVDs to play on your HD DVD player in full 1080.
  
• HD DVD on standard or dual layer DVD discs: I do this now and get up to 43 minutes of HD DVD format on a regular dual-layer DVD. It is recognized by my Toshiba HD-A2 player and plays with no visible loss. I use Pinnacle to write and burn the disc. With a standard DVD I get about 24 minutes of HD content.
  
• Blu-Ray on Blu-Ray discs: You can purchase a Blu-Ray burner and burn Blu-Ray content on Blu-Ray DVD discs. This is probably the best way to go if you have a Blu-Ray DVD player. But the media and burners are still expensive. The media is about $15 for 25GB, and $25 for 50GB Blu-Ray blank discs. The burners are around $370 up. You can use Sony Vegas, Pinnacle Studio 12, or Ulead to burn DVD content.
  
• Blu-Ray on standard or dual-layer discs: I believe that this is the same process as I described above for HD DVD discs - except using the Blu-Ray format. So, you should be able to get about 43 minutes of Blu-Ray format on a dual-layer (8.5GB) DVD disc. You don't need a Blu-Ray burner or media using this method. But you will need a program that will burn to the Blu-Ray format: Sony Vegas, Pinnacle Studio 12, or Ulead. Nope, this didn't work for me.
  
• Wide screen 720 X 480i, upconverted: This is a lossy conversion, but doesn't look too bad on an upconverted DVD player. I use Sony Vegas to read my MTS (AVCHD) files to create a standard resolution, wide screen format DVD. This is a great way to share your video with friends that do not have a Blu-Ray or HD DVD player. This format will play on most DVD players, and will fill your wide screen, high resolution TV using a upconverting DVD player.

Regarding software: Sony Vegas is the most stable and fastest HD video editing software that I have found. But it doesn't burn HD DVD format, it only burns standard and Blu-Ray format. I have to use Pinnacle Studio 12 to burn my HD DVD format discs. Pinnacle looked promising when it came out, but crashes a lot when you start adding menus and effects. To use Pinnacle, just make a straight video without effects or menus. It seems to work fine without crashing then. I have heard that Ulead does a good job, but haven't had time to verify this yet.

Let me know if you have anything to add to this analysis. Many people new to AVCHD have been asking questions about this and I thought that I would share my experiences.