Because I spent many hours in doing research on compatibility issues with AVCHD on DVD I want to sum up what I found out and share the knowledge.

Using the following guide you will be able to create AVCHD DVDs that are playable on the Sony Playstation 3, without remuxing or re-encoding h264 encoded HD footage from the Canon HF100.

• Create a AVCHD DVD with Nero Vision and output to a folder on your harddisk. Nero Vision applies smart encoding to the stream files produced by the Canon HF100, so the creation of a AVCHD DVD only takes minutes.
• Go to the output directory.
• Rename INDEX.BDM to index.bdmv
• Rename MOVIEOBJ.BDM to MovieObject.bdmv
• Change the extension of the files in the CLIPINF folder from CPI to clpi (e.g. 00000.CPI to 00000.clpi)
• Change the extension of the files in the PLAYLIST folder from MPL to mpls (e.g. 00000.MPL to 00000.mpls)
• Change the extension of the files in the STREAM folder from MTS to m2ts (e.g. 00000.MTS to 00000.m2ts)
• Do the same for the files in the BACKUP folder.
• Alternatively, you can use the rename.bat batch file attached to this article. Just put it in the AVCHD\BDMV folder and execute it. Delete the file after execution.
• Open Nero, create a UDF DVD project.
• In the UDF settings tab select "Manual settings", partition type "physical partition", file system version "UDF 2.50".
• Drag the BDMV folder into the root of the project and burn the compilation.

Remember that the UDF 2.50 DVD will not be readable with Windows XP without additional drivers (Vista reportedly is able to read this version of UDF). The PS3 should now play one clip after another.

And this is how the PS3 recognises the DVD: