Avchd? The Avchd format allows the ability to convert Blue Ray to a similar high quality format using software which video pirates have been all over.  The new alternative format to Blu-Ray seems to be the Avchd format because it allows high quality movies in the size of a standard dvd (no special Blu-Ray burner required).

Mainly the Avchd format allows compression of Blu-Ray, HD DVD videos to be further compressed allowing smaller download sizes for high definition films.  Divx already allowed compression DVDs into 700 mbs.  What Avchd allows is converting Blu-Ray and HD Dvds into 4 gb dvd discs.

Software to Convert to Avchd
FFDshow is a free, Open Source collection of codecs, including AVCHD.
Use VirtualDubMod as a free conversion sofware to convert to AVCHD.