I think what you are looking for is a DVD (5 or 9) burned with AVCHD format files. Most Blu-Ray players will play such a disk. It will contain true HD files (h.264-AVC encoded) and will give you true HD video playback. Playing time is obviously less than BD since a DVD can only hold 4.8 or 9 Gbytes instead of the 25 or 50 GBytes of a BD. I have been told that PE 7 and 8 will produce this format but I have not done this myself.
Hunter