Rendering Errors in Sony Vegas 9 Platinum

[Sedvic]

After editing MTS files I render them (Make Movie) into Blu-ray M2TS format(BEST rendering option is ON). Rendering errors progressively getting worse with increase of resolution of MTS files.
Worst outcome comes after MTS files with 1920x1080 resolution:vertical lines appear jagged,numerous horizontal shifts or ripples. Resolution 1920x1080 in M2TS format is critical for my projects. I can't find out what the problem is. Any help?

Dell E520
4Gb memory
CPU:Intel Core 2 Duo E4300 at 1.8 GHz
GPU:Asus EAH4670 HDMI 512Mb
Vista 32-bit SP1

[minidv2dvd]

can you post a source sample and an output sample at a file hosting site? under 50mb each would be helpful.

but it sounds like an interlacing problem, it may just occur on your computer screen if the media player isn't de-interlacing properly. try something like powerdvd 8 to view it with.

[Sedvic]

Commercial Blu-ray videos and original Sony MTS files play by using PowerDVD 9 Ultra on my computer without any errors at all.

Original Sony MTS Test File:
http://www.megaupload.com/?d=IXJ1XW2Y

Same file after rendering by Sony Vegas 9 Platinum to M2TS format:
http://www.megaupload.com/?d=QDCYI2EQ

Horizontal line shifts are clearly visible.

Any suggestions?

Rendering Conditions.

Rendering quality:Best
Video format:AVCHD
Frame size:1920x1080
Frame rate:29.97
Bit rate: 16,000,000 bps
System Format: M2TS

Computer:
Dell E520
4Gb memory
CPU:Intel Core 2 Duo E4300 at 1.8 GHz
GPU:Asus EAH4670 HDMI 512Mb
Vista 32-bit SP1