Gordian Knot 0.33.0
XviD-1.0.3-20122004 _Final Release
P4 3.0GHz HT 800MHz FSB-winxp SP1-2GB RAM PC-3200-SB Audigy 5.1-GeForce FX 5700Ultra

So I have Smallville Season 1 and I want to make a backup but if I shrink it to 1 DVD5 it looks a bit blocky.And I don't want to Split them to 2 half cuz It would end up using 12 DVD's.So I got Gordian Knot and Gordian codec pack.So I cut out all the intro's & ending to get a better bit rate.It's 40 m show now, 128 mp3cbr, 23FPS,Bit per pixal 0.203,estimated size is 350mbs and average bitrate is 1097kBits, res 640x352.But when Its done its only takes up 315mbs so Im lossing the rest 35mbs in quality right?

This are my Xvid settings
@ First I was using Simple @ L0 cuz I read it in a tut some where, But guys at Doom9 and other place where saying use AS @ L5 and nothing else.
****First Pass
AS@L5->H.263->B-VOPs max 2,ratio1.50,offset1.00 and Packed & Closed checked everything else default.Twopass 1st pass->Discard first pass.Zones Start Frame 0, Weight 1.00,Static Begin keyframe & Chroma optimizer checked, BVOP 0.Advanced OP, Motion 6 Ultra High-4Wide Search, Chroma motion checked, Droped ratio 0 Max I-frame 300, Quantization All min are set to 2 and all max set to 31, Trellis quantization checked.
****Second Pass
AS@L5->H.263->B-VOPs max 2,ratio1.50,offset1.00 and Packed & Closed checked.Twopass 2nd pass->Intra-frames tuning-I-frame boost %10, I-frames closer (frames)1, reduced %20,Overflow treatment-control strenght %5,max overflow imp%5,Max overflow degradaton % 5, Curve compression both 0%, Zones & Advanced Opt same as 1st pass.The only difference is Target bitrate set to 960 but GK says I don't need to change any thing there.
**Gspot findings Runtime 00:40:20 (58,032 fr), xy 640x352 (1.82:1) [=20:11], Bitrate 958 kb/s FPS 23.97 Qf0.177bits/px**

Could it be that GK is not changing the bitrate by it self?Or is it my settings?Maybe I should off put screenshots but I have dialup so I would off took forever.lol