I'm capturing hi-8mm tape to AVI through a Radeon 64mb ddr vivo using ATI's Video In app (analog capture). Then I convert to mpeg using TMPGEnc with the video cd template and motion search precision set to high. Burn to VCD (not XVCD or super VCD) using nero 5.5.6.4.

Quality is fair, but lots of artifacts in low light and high frequency images.

Two questions:
1. What are the optimal AVI settings that result in the best encoded mpegs from TMPGEnc?

2. What settings can I play around with inside TMPGEnc to decrease artifacts and increase definition?