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With AVCHDCoder you can convert MKV, M2TS, Blu-ray and WMVHD files to AVCHD. Almost everything will be done for you. You can add srt or sup subtitles files. If they are in your input file or not it doesn't matter. Subs and audio will be extracted automatically. Integrated the tool with some very rare formulas to calculate the bitrate. Discs will be filled for nearly 100%. I made it almost noob proof. Based on free tools. Requires: Java, Avisynth, Ffdshow and Haali Media Splitter. (Included except Java)

Features:

Support for different kind of media: MKV, M2TS, MTS, TS, MP4, AVI, Blu-ray and most WMVHD files
Maximum of 32 items on 1 disc. (Mixed content)
Customize your intro video.
Search for movie information on the internet and be able to use backgrounds and covers.
Basic menu support.
Up to 32 subtitles streams. SRT/ASS/PGS Blu-ray support.
Up to 3 audio streams. AC3, DTS, DTS-ES, DTS-HD HR, DTS-HD MA, True-HD, LPCM, WMA9, WMA10 Pro, AAC, FLAC, MP2, MP3, Vorbis/OGG support.
Chapter support
Wide range of output sizes: DVD5, DVD9, BD25, BD50, USB 4GB and custom output size.
Integration of AVCHDCalculator to calculate the bitrate very accurate. So you are sure the discs are not oversized or to much undersized. (Unique calculator, first in the world)
.iso or folder output.
Video downscaling.
Audio conversion.
Normal and High Quality subtitle conversion.
Borders will automatically be added to the video if necessary. Aspect ratio will be kept at all time.
No need to configure the x264 video encoder. There are 3 build in profiles that can't be edited.
Native 64 bit encoding.
Decoder Tester to check if all required decoders are working properly.
Save and open projects (jobs).
Video remux mode for H264, VC-1 and MPEG2