Ok, here are my current settings:

It is encoding right now so I am not 100% sure the aspect ratio is correct. I like doing 2-pass encoding. For the final product I recommend using the highest quality preset for 2P DVD-5 then editing the settings and setting the size to 8100 minus whatever your audio file size is so the final mkv will be around 8100. This should be small enough so that when it is converted to AVCHD, it will fit on a DVD-DL disc.

Once my encoding is done, I plan to burn it to disc and check it out in my theater. Can't wait! I will see if I can upload the final product (probably using sendspace).

When burning to disc, I recommend using Imgburn and you will need to set the disc format to UDF 2.5.

Mike

Edit: Ok it finished (that was quick). I noticed that Yoda and Bespin aren't cropping properly.

Edit 2: Here is the file: http://www.sendspace.com/file/ijtzky

Like I said, just use ImgBurn and set it to UDF 2.5. I just watched it on my 163" screen using my PS3 and it looks great! Can't wait to see the final product!!!