Ok thanks for the explanantion.
It seems to me that your approach, putting the videos on the timeline and producing a Bluray is the right approach if you merily want to get those old movies on Bluray. PD should be able to do that for you and even the smart fit should work.
For Bluray PD gives two options MPEG and H.264. You may want to experiment with that, but both are good options, H.264 may give you slightly smaller files. As far as I know you cannot mix MPEG and H.264 on one disk so be carefull.
No you don't have to produce the disk before you burn it. PD should work fine producing the disk at once. My suggestion to produce files first and then use these files as input for the disk creation, has to do with
a) (your approach) you select the file format you want (either MPEG or H.264. And you select the resolution too (for full blown HD usually 1920x1080... 24 or 50). It may be a good idea to define some chapters in the timeline, or even by producing separate files e.g. one per year or decade depending on yor needs.
b) With the file produced you can see for yourselve how much space is needed on the disk. If it all fits your 50Gb disks (make sure to tell PD that you are using those!) you can then create and burn the disk. Should it not fit, you can change the parameters for (some of the) the files to get them smaller. To my mind you are a bit more in control yourselve.
I usually take the b) approach as it gives me a feeling to be more in control and if something goes wrong with the burning I dont have to go through all the waiting for files to be produced as PD would do from scratch from the timeline.
Did you try the smart fit approach with the creation of an iso file rather than buring the disk at once? I admit 50Gb of bluray takes time, but you can determine whether it was the disk or something else that causes the error?
You have my sympathy as I know what labour it takes. A while ago I have done the same, took the old 8mm movies and got them on Bluray for the family. I took the b) approach, but I also decided to change all into 16:9, which took a bit more time, because you would want the important stuff still in the frame.