Try 1/2 D1 Resolution That 352x480 for NTSC (352x576 for PAL). It's better than VHS quality, and you can typically get 4+ hours per DVD. I'd use a bitrate 4000 Max, 300 minimum and avaerage in the 2000-3000 range (depends on your source quality and type of action).
You also want your audio to be AC3 (2 channel) or MP2, but definately NOT PCM (it takes up a LOT of space).