Hello, Im going to try and be as clear as possible, but not always possible when talking about this stuff.

I have a 1080p .ts transport stream that I want to convert to x264 for later muxing into a MKV. The video side of the conversion I seem to understand, but the audio is where Im confused. The original TS file already has an AC3 5.1 audio track, so I would just like to keep that without reencoding it. Do i select passthrough AND deselect "encode audio"? Or do I have to select encode audio? What about the AC3 setting? Also, when its all said and done, and the encode is complete, will I have 2 seperate files, the video AND audio that I can put into mkvmerge to make an MKV?