Secondly, you need to convert your blue-ray disc to fit the screen of your ipod and then copy it onto your ipod.
converting it will safe you lots of precious space on your ipod.
Not sure. I think that blue ray files are m2ts files (I was checking out some different formats in sony vegas and found that) and I can't even play them on my computer without them lagging, so I don't think it would work for touch.