Thanks for the detail reply, and sorry for the confusion. The above appears to make sense. I would prefer to use a simplified workflow.
So, what I have are AVCHD (*.MTS) files from two different camcorders, one which is recording AVCHD files with 5.1 audio, and another which is recording AVCHD files with stereo audio. Please let me know what is the simplest/best way to combine the two batches of AVCHD files onto a single bluray disc, withouth losing the 5.1 audio tracks on the AVCHD files which are originally recorded with 5.1 audio. I was trying to encode AVCHD directly onto BluRay using Encore, but I cannot combine AVCHD with 5.1 audio with AVCHD with stereo tracks.
Are you recommending that I make a PrPro sequence with 5.1 master audio, drop the AVCHD source files into the timeline (i.e. AVCHD files containing stereo and AVCHD files containing 5.1 audio), and then export this sequence from PrPro to Adobe Media Encoder? Please clarify on how to best approach this. Also, what would best the appropriate export settings for the m4v files (H.264 or MPEG-2)