Sony Bluray not play E-AC3. Convert to AC3 or to AAC?

[SmurfRecorder]

Hello. I have MKV movie with audio encoded as E-AC3. I'd like to burn it to bluray.
Unfortunately my disc player don't like E-AC3 format. And I know that it is common problem with Sony BD-R players (something about licencing?)
But I discovered very strange thing: my Sony bluray plays E-AC3 when first audio track is different format.

So I want to convert E-AC3 and keep original audio as second track.
But which format should I choose AC3 or AAC3 - to keep as much quality in small size?

Will be so much quality lose when I convert 256k E-AC3 as 256k AC3?

[themaster1]

AAC is a more advanced codec than AC-3, Good encode

[netmask56]

Post a MediaInfo file report of the file in question. It may well be something else. I take it you are burning the disc as data and not authoring?