No, there is a newer hybrid out there that is a DVD but its file structure is like that of a Blu-ray and it uses AVC files. Has a menu just like a DVD or Blu-ray, but the actual file data is in AVC format. Basically it lets you create a Blu-ray disc on DVD media. Granted the video length is shorter due to the smaller capacity of DVD media, but it's still enough for most home movies. Of course, you can only play the disc in a Blu-ray player that supports it.

Power Director 7 and I believe Pinnacle can create these discs easily and correctly, so I'm trying to figure out if it's possible to do in VMS or not.

"create a Blu-ray disc on DVD media"

Yes that is possible in Vegas Pro, I don't know about Movie Studio. There is thorough information in the Vegas help files and by using the excellent Search function on these forums. If those resources don't help, feel free to post back.

The question you asked in your first post was if you can "create an AVCHD DVD".
Calling something a DVD implies a format that can be played on a DVD player.
That is not possible.

You can create a DVD AVCHD and play it on Blu-Ray players. However, Vegas Studio contains a bug and creates an unsupported file according to the Blu-Ray player.

Rendering an AVCHD file and using Nero Vision to create the AVCHD DVD will result in a supported DVD AVCHD.

Hopefully Sony will solve the bug soon, because I moved from Pinnancle Studio to Vegas Movie Studio Platinum for the creation of AVCHD DVD's.

I did a test of an AVCHD DVD on several Blu-ray players at Best Buy. The disk on burned on VMS worked on the more expensive BR player, but didn't play on the lower-end, house brand player

I have been going around and around with Sony about burning AVCHD video to standard DVD-R single or dual layer. I have found the following.
I would burn an AVCHD video using Vegas 9 Plat. and it would not play in my high end Panasonic Blu-Ray player. If I burned the same AVCHD video using Pinnacle Studio 11 or Corel VideoStudio the DVD would play great. I was not able to get any answers from Sony. I tried the following experiment. I burned a DVD using Pinnacle a DVD using Corel and a DVD using Vegas 9 platinum. I took these disc's to Best Buy and my local electronics store. I discovered the following: The AVCHD disc burned with Pinnacle played on any Blu-Ray player that supported AVCHD. The results were the same with the AVCHD disc burned with Corel. However, the AVCHD disc burned with Vegas 9 Platinum would only play on a Sony Blu-Ray player. I have discussed this with Sony and have not gotten any answers to date. But if you want to burn AVCHD (HD) to a standard DVD that will play on any AVCHD supported Blu-Ray player, burn it with Pinnacle or Corel.

Falco, I am getting ready to move from SVMS to Pinnacle Studio Ultimate V12. Was this the program you were using and/or what is your opinion of Pinnacle? I am through with the lack of Sony support, problems between SVMS and Vista and inability to complete a project without crashed, etc.

Linda, Suggest you check out their forums for their users' view of the software and support.

However, suffice to say that many users leave that camp due to stability or performance issues.

I have began to use Pinnacle Studio 11 Plus again, because one year has gone without any solution for the crashing of the rendering ( AVCHD 1920x1080, mt2s).

I use a PS3 and just play a AVCHD data file and it works perfectly

Retcon,
I moved from Pinnacle 10 to VMS. Pinnacle is not stable. VMS is better. An MPEG2 file from Pinnacle 10 processed by Nero Vision gives a lot of black scenes. With VMS not.
I used in the beginning Nero -Vision for the creation of an AVCHD DVD. However, that resulted in recoding, and degradation of the quality.
I have now found a way with the combination of MVS and Nero Burning Rom without recoding.

See: http://members.ziggo.nl/t.valkenburgh/multi_media_studio_guide.pdf

As I stated in my previous post. According to Sony, you cannot burn a
AVCHD file to a standard DVD using Vegas Software. It seems that while they call it AVCHD it is not. This is what Sony said in there last response to me. "When burning AVCHD video to a standard DVD, Vegas creates what is called a BD-9 or BDMV disc. Some Blu-Ray players like the Panasonic brands in particular will not be able to play this type of disc back" I have found that these so called AVCHD disc's will only play on Sony Blu-Ray players or Play Station 3. This is the type of games that Sony has played for years. If you are going to use Vegas software then by god you will have to use their players.
I will no longer use Vegas Software or purchase any other Sony Products. I have found Pinnacle Studio Platnium 11 and now 12 to be a good product. I wiil probably upgrade to Pinnacle Liquid in the near future. I have found that AVCHD burned with Pinnacle will play in most all AVCHD supported Blu-Ray palyers, even Sony. I hope this helps you.

I have used both products. I will no longer use Vegas for the reasons I state in my other post's. I have used Pinnacle 11 and now 12 I find them to be a good product. You may want to try a trial version of Corel Movie Studio. The only problem I have ever had with Pinnacle is it can bogg down when trying to edit HDV unless you have a more powerfull computer and a good video card.

See my other post's

To Gthuss,
I agree that VMS cannot create AVCHD disc's. However, VMS can create an AVCHD file. This file can be used to create an AVCHD disc with Nero Burning Rom. See for the procedure my previous post.

A discussion about which product is more stable is not usefull, because it is very dependent on the function you are using.