I capture to avi, then encode to mpeg 2 and mp2 audio with Tmpgenc Plus to dvd size. I use Nero 6 (Nero Vision Express) to author. The only 2 choices for audio are PCM and AC3. Of course PCM causes the file to be way too large for a dvd-5, so it has to be re-encoded to AC3 (which is what I prefer anyways). When Nero starts to re-encode, it mentions a 2-pass process...is this for the video portion? I really don't want to re-encode the video, but it just seems to do this by default. The video turned out fine, but I can't help but think that maybe it would be a little better if Nero wasn't messing with the video portion (or is it?)
I am thinking of trying Tmpgenc DVD Author since it comes so highly recommended. Can I have video clips/jpegs with sound as menus with Tmpgenc?