Unfortunately if I try to burn to disc I will lose the HD quality. I was hoping to take the file, as is, and move it either to the ps3 to watch or save it to my HD to watch on the ps3 anytime I choose. I have been reading some places that I need to convert it from a m2ts file to something else. Anyone that can help that would be great! Thanks.
Download 'DGavcIndex' (no need to install) and demux the video and audio tracks you require, then download 'MKVtoolnix' and install. Using the 'MKVmerge' tool within toolnix you can merge the video and your choice of audio tracks into a MKV file