Convert m2ts to Mkv with HD audio

Hi,

Does anyone know of a (free) software tool that can convert an m2ts file (with DTS-HD or Dolby True HD audio) into an mkv file, so that:

- The HD audio format is preserved (xcopy stream=yes, DTS downsampling=no)
- The video output is resized from 1080p to 720p
- The video output is reencoded in x264, so the output is smaller.
- The m2ts source file is 20 Gb. Target file should be arround 6 or 8 Gb.

I tried:
- RipBot (encodes to DTS)
- Pav Bluray ripper (video/sound stutters)
- MakeMkv (video/sound stutters)
- DvdFab plantinum 8 (video/sound stutters)

I use MediaPlayer Classic to play these files.
I can play samples of Dolby True HD and DTS-HD
This software works fine.

I also can play the source file (in m2ts format).
With DTS-HD sound.

But this file is big (20 Gb in size).
And is for 1080p (where my monitor only uses 720p)

Can this be done ?

Greetings,
Gent32m

Is there a tool that can do both (at once) ?