Yes you can and it works and looks great.
But there are a few limitations you need to know about first.
Editing Software:
When exporting, the HD editing software must be able to enode the 1080i HD video in Blueray compliant H.264 format. If it can encode the audio to Dolby Digital format also, that is a bonus but PCM works fine. (I am using Adobe Premier Pro 3 but Elements 4 and other software can probably handle the encoding OK.)
Authoring Software:
The Authoring software must be able to accept H.264 format video, (some will only accept MPEG2 files) and be able to output to a disk image. ( I am using Encore CS3 but Elements may work here also.)
Data Rate:
The video data rate will determine the players that your "Blueray DVD" can play on and will also affect the length of the video you can get on a DVD. At the moment I have settled on about 15Mbps, CBR with linear audio. With Dolby audio, I am sure that it will work fine.
I have consistant good results using 15Mbps (upper field first) for the video files and PCM for the audio. If you encode the audio in Dolby the video files could probably be 16Mbps or even a little higher. AVCHD from a hard drive or memory card camera is only about 16Mbps and uses H.264 The H.264 compression is very efficient and gives excellent results at this data speed. You will get about 30 - 35 minutes on a single layer 4.7GB DVD. (I have not tried double layer)
Disks:
I had limited success with a variey of disks, but 100% success with Sony DVD-R and Verbatim DVD-R disks. Don't even try DVD+R disks as the players I have tried will not recognise them.
Players:
Your disks will probably not play on the earliest generation of Blueray players. Most of the recent models will play AVCHD format on DVD and will accommodate the spindle speeds necessary to read DVD data at this rate. I have a Sony BDP-S300 and it plays them fine. I took a trip to the local TV store and tried some disks in a few different players, and it seems that any of the AVCHD capable players will play them. They will not play in a DVD player.
Work path:
1. Capture your HD video to your computer. (I am using MiniDV format tape)
2. Start a new project and import and edit with your HD editing software, ensuring the total length is less than 30 minutes.
3. Export your finished work to your hard drive as Blueray compliant H.264 and PCM (or Dolby) audio, setting the bitrate at 15Mbps CBR.
4. Start a new project in your Authoring software and import the two files.
5. Set first play and end action.
6. Test the project and build to a disk image.
7. With reliable disk burning software, (I use Nero 8, but earlier versions will do) burn the disk image to a DVD-R disk.
8. Load in your Blueray player and enjoy.
I have not tried chapter points, but if you set the end play to chapter 1 the player will loop and play the movie again. I also have not tried menues but with 30 minutes or so of storage at about $1 swapping disks is fine for me compared to about $50 for a Blueray disk which can hold a couple of hours or so.
Cheers.