The BD570 and BD590 will both play H.264 M2TS files that you copy directly off a blu-ray disc. The players will even play the M2TS file even if the H.264 video is using 2 reference frames. The ONLY time the players WON'T play h.264 with 2 reference frames is when the video is in an MKV container. The Caveat to playing M2TS files is that you do NOT get Fast forward scan, nor do you get Fast Rewind Scan. You start the movie and play it. You can pause and restart play, or go back to the beggining of the movie. But you CAN NOT move around inside the movie M2TS file. (There is a way to do it, but is is very finicky). The players won't play M2TS files using the VC1 Codec either, unless they are burned onto a AVCHD or Blu-ray disc.