Based on what I have read on AVCHD vs. Blu-Ray it looks like that AVCHD video stored in SDHC card is compatible directly with Blu-Ray players equipped with an SD/SDHC card reader. It is also directly compatible as is when burned to a DVD disc. What I am a bit buzzled of is that it seems not to be directly compatible when burned to a Blu-Ray disc. Some sources tell that AVCHD needs to be transformed into MPEG2 BDMV format with some loss of information. Is this true, and if so why? I have a Panasonic HDC-SD1 and I am planning to buy a Panasonic DMP-BD30 or DMP-BD50. I am not sure if Sony has any Blu-Ray player models with an SDHC card reader.

I have Panasonic HDC-SD3 and Blu-ray Player Panasonic DMP-BD30.
I make AVCHD-discs by HD Writer, the player reads these great, shows in full HD quality .

This is not true. It is that some NLEs that offer Blu-ray authoring, can burn only MPEG-2.