I strongly support AVC/h264.
It's commonly enough supported on stand-alone machines.
My DVD/BD player can support h264 inside an AVI/MKV/MP4.
The audio is a different story. The restrictions largely vary from device to device.
Stand-alones don't always support the most diverse options as a computer.
On computers/laptops you can install codecs; stand-alone hardware is limited only to what the manufacturer installed.
There are multi-media playback "boxes" that support a wider range of formats and codecs than the typical BVD/BD player.
The Blu-Ray disc format would not be a very common medium for the final output. The disc burners can be bought at a reasonable, single price. But the media discs themselves are costly on their own. It's too easy to buy cheap media; cheap in quality and standards, expensive in price.
AVCHD can be a reasonable compromise to offer HD formats on a DVD-5/DVD-9 disc for DVD/BD machines that support AVCHD (mine does).
There are several AVCHD authoring software out there that is free, but limited in support. They work well, but take a long time to convert. One BD to AVCHD takes about 24-32 hours. On a slow machine.
Depending on what settings you use, time will vary.
It it's recommended to use the slower settings as the results will significantly improve. I've tested with one movie with two different settings and noticed vast differences in the visual quality.
As for resolutions like 576p, I'm from the NTSC world. 480p is ideal for me.
Frame-rates other than 23.976/29.97 would have to be played only on the computer/laptop.
H264 doesn't have any other advantage over MPEG2, it only compresses to smaller sizes without compromising quality.
You can get a 2hour movie in h264 with optimal, albeit slow settings, at 1.4gb-2gb (in SD resolution with SD audio, preferably AAC inside an MKV/MP4) and it will look near-identical to the original DVD version.
However, please take extra measures in learning all the settings before doing anything. Some settings will waste time, others will lack care when compressing.
For watching on the computer/laptop/media devices, I'd go for the h264/aac inside an MKV/MP4.
AAC compresses more efficiently, allows variable bitrate and can support 5.1.
For archival/disc formats, the most common formats that most people would download are: DVD and AVCHD-ready disc.
ImgBurn can burn the AVCHD to disc, some of the AVCHD 1-suite programs offer it as an optional download/install.
With AVCHD, you can have 480p? I'm not sure on the 480p, but I don't see why not. But then I don't see why should you. lol.
Common AVCHD formats are 720p. You can use 1008p, but then you lose quality because you have a bigger screen to distribute the bitrate.
A common mistake most people do online is to take a pure 1080p Blu-ray and convert it to an MKV file with 1080p screen resolution but the file size equals less than 4gb.
This only gives horrible, visual discrepancies. You get runs in the darker areas of the screen. You get data artifacts and glitches. And so many visual errors.
General rule of thumb for HD resolutions:
720p = DVD-5 file size range (4.2-4.7gb)
1080p = DVD-9/DVD-DL file size range ( 7.9gb)
For 1080p, it's best to use 7~GB as a minimum.
For a really good visual presentation in 1080p, your file size can get up to 14gb, depending on runtime of the film.
And it's best to keep SD material as SD resolutions (480/576). Upscaling is not well favored as higher resolutions only benefit from data that is originally available in higher resolutions.
If you take 1080p and downscale it to 480p, you lose all that extra data that is not needed when downscaling. If you want to upscale that back to 1080p, you'll suffer from data loss and the codecs will have to "guess"/calculate the missing data, interpret the output without producing as much errors as possible.
It's the same principle as compressing anything. A picture, an audio file, or archive any data with WinRAR, WinZip, 7zip. There's lossless compression and lossy compression.
Most video formats are lossy. Lossless video compression is rather large in file size. Extremely large. Over 30gb for a 2 hour SD film.
h264 has a lossless compression option, but it's large. It's a function that has to be "called" in order to get lossless compression. Otherwise it's lossy.
MPEG2 is lossy as well.
Extra care needs to be taken for upscaling anything.
For "extra care", it's best to get to know how to use AviSynth and VirtualDub with all the scripts and filters to get it right.
I have a decently large Blu-Ray collection and am in the middle of archiving it all to DVD/AVCHD and "portable" media such as MKV with h264/aac so I don't have to touch the Blu-Ray discs as much as possible.
And this is about the least of the information I keep in mind when transferring.
AviSynth/VirtualDub is what really takes up all the thinking.
For DVD authoring, Cinema Craft Encoder has about the same praise as Pro Coder, but both are commercially expensive.
HCEnc is a freeware encoder that offers excellent visual quality comparable to the other two commercial products.
QEnc has been used and is preferred for some. Good for doing special features and menus in lower bitrates.
Other commercial software like TMPEG do decent, but are not nearly as praised as CCE/Pro Coder and HCEnc.
I would avoid using VSO CoinvertXtoDVD. Most end-users will say it does "excellent" work. But I find it's limited in the scaler it uses. For downscaling, I prefer to use Spline variants.