I want to encode some Xvids and Divx's to M2v (Elementary stream) but I dont want to encode the audio to MP2 or leave as PCM as I author in AC3 to give me more space for higher bitrate when encoding.

I have tried using the TMPGenc run through at https://www.videohelp.com/tmpgencdvd.htm but it will only allow me to use the wizard if I am encoding/authoring in MP2 or PCM it will not allow me to use just the video and I am not an experienced user of TMPGenc so would not know what settings to use or not when trying to accomplish this.

I used VDub to extract the audio as is usually recommended.

I have TMPGenc, Premiere 6.5, Ligos plugin and a hardware Mpeg encoder (which gives excellent results from DVCAM files to M2V's, so I was hopefully looking to use this as my encoder but I do not know whether I can load Xvids or Avi's from xvids into Premiere.

Can someone please push me in the right direction of a guide or give me a run through on how achieve this.

Thanks
Rimmer