Thank You Masahiko.
HD is the way to go! :)
Do you have a Bluray Reader in your PC?
Is that how you transferred the file from disc? I just didn't expect it to be an mpeg2 file that's all.
No need to worry about region coding so much. That type of information should not be present on the m2ts file (which is the multiplexed video and audio file for those that don't know), so if it's a problem for anyone, all they need to do is keep the m2ts and play that back on their PC.