PS3 is starting to add more and more video codecs, one being AVCHD (m2ts) I was wondering if there were plans to add this?

One thing I really need to do is split the file sizes. Am i understanding that when asking how many discs (for example 2 CDs) it will create two separate files?

I'm trying to convert MKV files which are giving me problems. I want to keep them in the most HD format possible, so i'm going with Mp4 h.264 and it's not working.