ok. i've read a bunch about the process of creating a h264 quality video to compress a blue ray into a much smaller file. the problem is, i dont really have a firm grasp of how to go about doing this. step 1. rip video to harddrive (done) step 2. input movie file (whatever.m2ts) into tsremuxer and mux file into main movie and whatever audio format you want (i pick ac3 for smaller size). i mux this file? should i be demuxing into multiple files? muxing creates a smaller .m2ts or .ts (whichever i pick) am i good so far? step 3. confused as to where to go from here. i've been opening megui. apparently i need to create an avisynth script? a bit confused.
Read through this thread, there's a lot of good information on exactly what you are trying to do. Ask any further questions there. http://forums.afterdawn.com/thread_view.cfm/639346