Well I thought I could find the answer but after days stumbling around the net I'm stuck

All my video is on a WHS served via PS3mediaserver to my PS3 (gigabit LAN!). I'm using XviD4PSP v5.0.37.8

I have a Panny TM700 and shot a bit of footage in 1080 60p. If I copy the M2TS file straight onto the media server the PS3 plays it; ish...

Previously I've done 1440 1080i footage I've converted to 720 50p and this plays fine. Obviously I can convert down to this from 1080 50p, I was just wondering if there was anything I can convert to now whilst the Blu-ray standard lags behind the proprietary Panny 1080 50p but still retaining the full frame? I've tried an MP4 but the audio from the TM700 is in 5.1 AC3 which isnt supported. For some reason XviD4PSP doesnt convert it to AAC

Media info for 1080 50p stream -
General
ID : 1
Complete name : D:\original.MTS
Format : BDAV
Format/Info : Blu-ray Video
File size : 221 MiB
Duration : 1mn 13s
Overall bit rate : 25.3 Mbps
Maximum Overall bit rate : 28.0 Mbps

Video
ID : 4113 (0x1011)
Menu ID : 1 (0x1)
Format : AVC
Format/Info : Advanced Video Codec
Format profile : High@L4.2
Format settings, CABAC : Yes
Format settings, ReFrames : 4 frames
Duration : 1mn 12s
Bit rate : 23.9 Mbps
Width : 1 920 pixels
Height : 1 080 pixels
Display aspect ratio : 16:9
Frame rate : 50.000 fps
Resolution : 8 bits
Colorimetry : 4:2:0
Scan type : Progressive
Bits/(Pixel*Frame) : 0.231
Stream size : 208 MiB (94%)

Audio
ID : 4352 (0x1100)
Menu ID : 1 (0x1)
Format : AC-3
Format/Info : Audio Coding 3
Duration : 1mn 12s
Bit rate mode : Constant
Bit rate : 384 Kbps
Channel(s) : 6 channels
Channel positions : Front: L C R, Side: L R, LFE
Sampling rate : 48.0 KHz
Video delay : -40ms
Stream size : 3.34 MiB (2%)

Text
ID : 4608 (0x1200)
Menu ID : 1 (0x1)
Format : PGS
Duration : 1mn 12s
Video delay : -40ms