Hi Vance,
You have some testing to do I would say.
Firstly if you are going to play HD files over your network you can almost forget the wireless option. Perhaps 720p MKVs but I suspect 1080i/p AVCHD won't manage, let alone 25mbps mpeg2.
So if you have a wired connection you may like to make a few trial files and see how they go.
Rendering to AVCHD is good in theory but PD has a pretty poor rendering engine and artifacts and blocking are introduced.
Rendering to mpeg2, although you are changing the codec, results (for me) in a much better result. Try BD profile but this is 25Mbps. You can use the Mpeg2 HD option and drop the data rate to say 20Mbps if the BD profile stalls.
If all else fails try rendering to Mpeg2 and re-encoding to MKV using the freeware on the net (Google it)
This is what I would do if I had such a machine (not yet available in Oz

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