Just to clarify, and allay any fears: the LADY SNOWBLOOD films are being released in two, seperate editions.
Edition 1 - The Steelbook Version - Will contain both films on one BR disc, and both films on one DVD disc.
Edition 2 - A Dual-Format Version - Will contain both films on one BR disc, and both films on one DVD disc.
At least, that's my understanding of it.
As both films are only about 85 minutes each, there should be no problems fitting both films onto a standard 50gb Blu-Ray disc, and the films should not incur any defects in the audio or visual quality of either film.