I thought you meant mpeg 2 or mpeg 4 ( H 264 ) out from your disc , I have tried both and I think that so far, mpeg 2 is better.
I suppose your source media is standard interlaced hdv 2
I would recommend doing a test going from an uncompressed timeline, do a little correction with a filter applied on the entire clip or the header to have the entire clip to render
The settings for your avi file out from Liquid should be interlaced - 4:2:2 - highest quality both on the tab in Liquid and in the tab in the advanced settngs
Size 1920 x 1080
Your settings for the bluray export from Encore should be interlaced, do a test if you are unsure if lower or upper field should be choosed, you can easily see when there are movements if you have sort of " shadows "
The discs I am doing is better than the one that I have used to compare, my opinion of course