Blu Ray Baby

Hi,
I am trying to make my first blu ray disc and have spent two days reading the many suggested ways of doing this. I have opted to try a workflow posted here in June of last year which suggests outputting a quicktime movie from FCP, encoding the file to MPEG4 Blu Ray using Adobe Media Encoder then importing it into Encore CS5 to author for Blu ray burning. ( Sounds Easy.) My questions are:- first of all in the Media Encoder format menu there is no MPEG 4 Blu Ray option, only MPEG2 BluRay or H264 Blu Ray -which should I use ?. Question 2: Is it all right for me to use a reference file from fcp to Media Encoder or should it be a self contained quicktime file.? Second question : It all seemed to work with a reference file but now I have four NEW files on my drive which are- m2v.xmpses -.wav -.xmp -.m2v -which of them do I use with Encore to author the Blu Ray file. Last Question can I output a disk image from Encore to burn the disk using toast, in the same way I make a disc image and burn a DVD using toast.
I have done lots of research and would be making some tests right now but my newly ordered Blu Ray burner has not arrived and with the Jubilee extended bank holiday here in the U.K it might be another week until the post gets through. I will then be up against it timewise to deliver to my client hence me asking for help here.
Looking forward to some advice to get me going and prepare for the arrival of the burner.
Incidentally any advice on when and where to create a simple chapter menu in this process would be appreciated. i.e in FCP or in Encore. Many Thanks BRIAN PATERSON

brian paterson