For now, VLC will put anyfile it finds in the folder into the playlist. It plays the m2ts files well but you loose the dvd menu feature.
It would be great if VLC allowed to play Bluray folders from hard disk drive.
Notice that there may be legal questions :
I saw that PowerDVD removed this feature in their new release as the industry asked for it.
Nero Showtime v 4.3.2.0 (included with Nero
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a+,=)
-=Finiderire=-