Thanks Rob. It works in PowerDVD now. I’ll try burning it later.

And yep, ANH, I’ve confirmed that deleting the AACS folder is sufficient. It’s essentially a placeholder for real encryption if the disc were to be pressed. And various playback software packages are too dumb to do anything besides see the folder and flip out. If it were really encrypted, playback would not be possible just by deleting the folder, unless you were running AnyDVD or something. Similarly, just clicking on the m2ts wouldn’t get it to play in VLC, etc.