Muffled/Poor quality audio from AVI

[Ash X]

I'm transcoding from an AVI source which has MP3 audio. I'm converting into MPEG1 using virtualdub and TMPGEnc- Here are the steps I follow:

Video- direct stream copy
audio - full processing mode
audio - no compression (PCM)

Then I save a new uncompressed AVI. When i burn the VCD, the sound comes out slightly muffled and often when someone speaks, the speech has a "pop" or "thump" effect. Should I instead save the audio as a WAV, and use that as my audio source? I was told the above method was the best. also the video has consistant pauses, but one problem at a time!

[redwudz]

I would use WAV format for the audio.