Best format to render timelineas

Hi,
I am relatively new to video, having worked in audio for some time.
I am wondering what everyone has found to be the best format to render your timeline to, before importing to Encore. I normally have two or three timelines, and expect it's best to export them all in high quality and present all the files to Encore for it to automatically compress them all onto your DVD.
Having tried the "Export to Encore" option, I found that in Encore, there was still quite a lot of disc space free, so it could have been in better quality, but when I tried to increase the quality it said the disc limit had been exceeded?
I have rendered as "Uncompressed Microsoft AVI file". This worked ok, but I had to set some clips to "Interlace consecutive frame" to get correct playback after render (Everything appeared OK with the picture before this). Also a problem I have found with the render is a "dip to black" produces a "bump" at the "out" point, whereas a cross-dissolve (to nothing) is fine. Is this something to do with black levels? It happens whether using a still image or footage.
The video footage is DVCAM widescreen - PAL format.
Hope some of you can help.
Daniel

I use a
DVD bitrate calculator. Others rely on Encore to figure it out for them. I prefer manual control.

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