What is the Bluray Stream option for in Mpeg2 preset?

I just noticed by accident that in the mpeg2 preset quality tab when I clicked the SD DVD drop-down box that there is an option to create a bluray stream. Am I correct to assume therefore that it is possible to create a bluray mpeg2 file direct from a QT Ref exported from FCP timeline; but it would have to be authored in another package, e.g. toast, encore? Has anyone used this? What is the quality like? Is there an avchd option somewhere - I couldn't find one so I presume there isn't one.
TIA for anyone who can shed more light on this.

One draw back with Toast 10 is that it will re-encode the video no matter if you have NEVER re-encode set. A bug since version 9, for what I read. One good thing is that you can put the HD/Blu-ray onto a regular DVD using Toast. These bit rates are higher than what you are used to... 10,000-18,000 Mbps. You can use either Mpeg-2 or H.264. H.264 being you better bet to use, if you can. These video files are wrapped in a .m2ts container. (I think that's the right) Lastly, Toast encoding time is terribly slow (zzz), at least on my machine.
Google it and do some reading... And there are other forums that people have posted their experience/questions making these DVD's.

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