DVD to PS3 and AppleTV?

[chicot]

Please someone give me a definitive answer. I want to convert my DVD's to store digitally on both PS3 and AppleTV, I don't think there is a format that will work on both because apple are too fusy about what they will allow you to play so I will add Boxee to the AppleTV. I want the best video quality (DivX isn't good enough) and decided on H.264 but this uses AAC for audio which my AV amp isn't capable of processing, I end up with poor 2 channel sound if I convert to H.264. However I found that there is a H.264 format that has AC3 (dolby digital) as its audio, this has a file extension of M2TS. The result is perfect video (H.264) and dolby digital audio. So, the question is have I gone down the correct path, I don't want to spend weeks converting all my DVD's to then find out I should have used something else. I hope that all makes sense and thanks in advance for any replies.

[MysticE]

Check out Xvid4PSP. It has many output formats including M2TS.