"automatic" transcode settings is not filling my DVD capacity

I've put together four AVI files in Encore and every time I go through the "build" process 20 GB worth of material is reduced down to 720 MB (approx).  I always thought that a great advantage in using Encore was that it filled your material to fit the medium.  I'm using a DVD not CD giving me more than 4GB.  How do I get "build" to maximize my project into a single DVD, or DVD image?
Thanks...

"What version of Encore?"   Encore cs4
"Do you have any material in the DVD-ROM content?  (Look on the build tab.)"  Yes, it indicates 526 KB used for DVD-ROM content.
" Is it "Untranscoded" and "Automatic"?"      Untranscoded.
"In the Project Settings, Advanced tab, what do you have set for the maximum Audio/Video Datarate?"   8.0 Mbps
As no changes were made from my original setup, my results are the same: Format: DVD; Output: DVD Image; Disc Info: 723.2 MB used, 3.96 GB free.  My four AVI files total about 20 GB.  Again, my original question, why doesn't Encore use up another 3 GB to maximize the data available which must produce a better running DVD video than information on a mere 723 MB?
I do thank you for your assistance.  I'm sure that there must be something else I'm missing.
Howard

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