I wrote a detailed tutorial on how to export your DV/HDV/AVCHD footage on a media TV appliance:
http://eugenia.gnomefiles.org/2007/08/11/from-dvhdvavchd-to-ps3xbox360appletv/
I am using Vegas Movie Studio 8 Platinum as the main tool (you only need the basic version of VMS if your files are plain DV). Hopefully (and this is just a honest wish), in the next major version of VMS, full 1920x1080 resolution and flexible h.264 exporting will be supported as these once-high-end features are becoming consumer commodities real fast, but until then, my tutorial might be useful to some. Please note that the PS3 can read .m2t files so you can avoid the whole huffyuv/ffmpeg ordeal, but the Xbox360 and AppleTV can't (plus, m2t files are much larger in size).