Hey everyone,

I have a rip of a bluray on my hard drive with these specs:
Code:
Format                           : Blu-ray Playlist
File size                        : 494 Bytes
Duration                         : 1h 21mn
Overall bit rate                 : 0

Video
ID                               : 4113 (0x1011)
Menu ID                          : 1 (0x1)
Format                           : VC-1
Format profile                   : AP@L3
Codec ID                         : 234
Duration                         : 1h 21mn
Width                            : 1 920 pixels
Height                           : 1 080 pixels
Display aspect ratio             : 16:9
Frame rate                       : 25.000 fps
Chroma subsampling               : 4:2:0
Bit depth                        : 8 bits
Scan type                        : Interlaced
Scan order                       : Top Field First
Source                           : 00002.m2ts

Audio
ID                               : 4352 (0x1100)
Format                           : DTS
Format/Info                      : Digital Theater Systems
Format profile                   : MA
Duration                         : 1h 21mn
Sampling rate                    : 48.0 KHz
Language                         : English
I want to re-encode it to MKV to reduce the file size but maintain the quality.
I play the movies off my hard drives via HDMI to my HDTV, and also to a second computer via wireless network, so my goal is to have the file around 6-8GB.

This is the first 1080i source I have had to work with, and I was poking around this site about interlaced video, and whether I should leave it interlaced or not.

So far I've learned that deinterlacing of any sort reduces quality, and my TV / video card / software player should deinterlace it as I play it. Not sure if it does it automatically, but I don't want to fumble with switching settings back and forth on anything depending on if I'm watching an interlaced or progressive source.

This 1080i m2ts file plays like crap on media player classic, so jerky and only 14 fps. Maybe interlaced video takes more processing power than progressive? I've never had a problem with 1080p playback. (My CPU is Intel quad core 2.33 ghz, 3GB RAM; video card nvidia geforce 9500GT)

I'm not sure how to go about encoding this video. Do I just convert to MKV leaving it as 1080i? Or do I change it to progressive? Since I'm re-encoding it to MKV either way, would it really matter about the quality loss due to deinterlacing? Do I have to do IVTC on it?? This interlaced stuff really confuses me.

I appreciate any input and direction on this, thanks!