I just dicovered that (NTSC) DVDs requires at least one AC3 or PCM audio-stream.
Since PCM is a waste of space (according to my opinion), I will choose AC3.
So I just wonder, is a 224 kbps AC3 (2ch) audio-stream equal (in quality) to a MP2 Layer 1 audio-stream with 224 kbps?
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The file sizes of mpeg audio and AC3 at the same bit-rate are almost identical. I leave it to the audiophiles to argue the fine points, but I think the sound is equivalent (although AC3 seems to have a lower "gain" (loudness) in my experience.)
By the way, you don't have to have either AC3 or PCM for your DVDs to work. Even if the authoring program "warns" you (like Maestro does) it will still go ahead and author it for you. The vast majority of players will play mpeg audio. It is just that the formal standard for NTSC DVDs say one or the other. So using AC3 gives you the most compatibility.