Compressor 3.5 settings for BD encodes?

I've been experimenting with creating BD media in Compressor by using the provided templates or creating my own.
The current BD template calls for H264 as the codec, however I'd like to use MPEG2 as encoding is substantially faster. A 60 minute encapsulated QT file straight from FCP7 takes almost 3 hours to process on my 2008 8-core Mac Pro, whereas encoding in MPEG2 (QMaster set up correctly) takes roughly 30-45 minutes!
The problem arises when its time to create the BD disc image. Batch Monitor usually returns with an error stating that either the audio or video settings aren't correct for Blu-ray.
My most recent attempt utilized DVD Dolby Audio for the audio portion, and an MPEG2 elementary stream for the video. Inspector settings for video were set to Blu-ray for Stream Usage.
Could anyone please provide insight as to what I'm doing wrong?

I'm not sure about this, but you may only be able to use h.264 for video to make a blu-ray inside of Compressor.
I would suggest encoding in MPEG-2/AC3 in Compressor and then using Toast to author and burn.

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