Sorry, I'm having a hard time reading between the lines to figure out what you are actually doing. Maybe a bullet list of actions would help. You talk about inabiltiy to burn a blu ray disc but you talk about setting disc quailtiy in the "Produce" section. "Produce" produces a file or writes back to tape, it can not write to DVD or blu-ray.
To create a blu-ray disk do the following:
1) Start a new pds project
2) drag the aquarium to the time line
3) click the "Create Disc" tab
4) click on the "Configure create disc preferences" wrench icon at bottom
5) Set Disk Format > BDMV (with Menu)
6) Set Disk Capacity > 25GB
7) Set Video Format > MPEG4 AVC
Set Video quality > BD 1440 x 1080
9) Set Audio Type > Dolby Digital
10) click the Burn icon and burn to disk
Do this set by step and reply back what issues you have.
Jeff