Well I'll be damned! It pretty much worked :)

Previously I was converting the video from 24 to 23.976 while demuxing the MTS2 file on my DVDR but when leaving the conversion until the final creation of the Blu-Ray disc it works.

The only thing wrong is the subtitles are now playing to fast. I thought that ticking their 'Bind FPS to video file' box would solve this but it doesn't.

Maybe I can find a program out there that converts the FPS of .SUP files from 24 to 23.976?

Many thanks to Adywan. All you Sony S350 owners can now enjoy his fine release :)