1920x1080i 25 Huffyuv avi to a blu-ray compatible standard? AVCHD?

[RossDaBoss]

I'm just getting back into capturing stuff but it's been a few years so I need some advice.

I'm capturing at 1920x1080i 25 with Huffyuv video and pcm audio. I would like to convert these files into a smaller file size that also retains the quality and is blu-ray compatible. I was thinking of using AVCHD via Sony Movie Studio 12 but I wasn't sure what bitrate to use, then I read AVCHD is NOT good for interlaced video.

What format, software, bitrate should I be using?
Thanks

[LMotlow]

I was thinking of using AVCHD via Sony Movie Studio 12 but I wasn't sure what bitrate to use, then I read AVCHD is NOT good for interlaced video.

Where did you read that? Stay away from that site.

1920x1080i 25fps interlaced is BluRay and AVCHD compatible. You can use MovieStudio to encode for BluRay/AVCHD directly.
You can resize if you want, but resizing has a quality cost -- a little or a lot, depending on how it's done. I wouldn't use SONY to do it. Use Avisynth. To resize you have some choices:
a - deinterlace with QTGMC and resize to 1280x720 50fps progressive, which would be BluRay/AVCHD compatible, and encode.
b - deinterlace with QTGMC and resize to 720x576 PAL, then re-interlace for 25fps, and encode for standard definition BluRay/AVCHD or DVD, either at 16:9 DAR.

1920x1080 progressive 25/50fps and 720x576 25/50fps progressive are not BluRay compatible. For Standard Definition formats you should change the color matrix from BT.709 HD to BT.601 SD. Do that in Avisynth, too.
https://www.videohelp.com/hd#tech
https://www.videohelp.com/dvd#tech