Encore CS5.1 forcing transcode on Mpeg-2

Hello,

I just received an mpeg-2 from a client to make his bluray with. I usually don't have any problems with mpeg-2s. But, encore says that it needs to transcode the file. Whereas the audio he gave me says "Don't Transcode" in encore.

Below are the file details from the MediaInfo app.

In Encore, I made sure the project matched the frame rate and resolution, so I'm not sure what I'm doing wrong. I'm using CS5.1

Format : MPEG Video
Format version : Version 2
File size : 11.5 GiB
Duration : 1h 31mn
Overall bit rate mode : Variable
Overall bit rate : 18.0 Mbps
Video
Format : MPEG Video
Format version : Version 2
Format profile : Main@High
Format settings, BVOP : Yes
Format settings, Matrix : Custom
Format settings, GOP : M=3, N=15
Duration : 1h 31mn
Bit rate mode : Variable
Bit rate : 18.0 Mbps
Maximum bit rate : 27.0 Mbps
Width : 1 440 pixels
Height : 1 080 pixels
Display aspect ratio : 16:9
Frame rate : 29.970 fps
Standard : Component
Color space : YUV
Chroma subsampling : 4:2:0
Bit depth : 8 bits
Scan type : Progressive
Compression mode : Lossy
Bits/(Pixel*Frame) : 0.386
Stream size : 11.5 GiB (100%)
Color primaries : BT.709
Transfer characteristics : BT.709
Matrix coefficients : BT.709