Difference of 3.3 Mbps bit rate burn vs 4.7

Is it easy to see the difference between these two encodings? Reason I ask, I finally got a what looks to be pretty quality burn from my 2 hour project encoded at 3.3 Mbps. I read if I encode the audio to AC-3 I can go to a higher bit rate. Will the quality be that much better? I have not yet watched the whole project but it looks pretty good as is. But if it will look even noticeably better with a higher bit rate as a result of compressing the audio I can install compressor, learn to use it and re do the burn.
On another note, will I be able to hear the difference in the audio after it is compressed to ac-3, as I would imagine there would be some quality loss in the compression(?).
3: In the burn I used Constant variable rate, and not 2 pass variable rate. The reason is I was not sure if it would fit on my dvd. Should I try to go for the 2 pass variable rate? My project has equal mix of action and talking heads, however the action is not extremely fast or anything.
4: I used 4.7 in the title randomly. How much higher could I go in the burn bit rate as a result of compressing the audio approx?
Thanks for any info.

You might see a difference - depends on the source footage but thats for you to determine. Do a test.
Using ac3 is a good idea since allows at least 1mb/s jump in your encode rate for video. This is much more important than audio since most don't have the installation to hear the difference between compressed and uncompressed files. The only time I'd use un compressed files is if the project /clients demands the fidelity (like a concert or music title).
Yes...use VBR for when space might be an issue. According to my calculation you can use a VBR target encode rate of 4.8 or so with a peak at around 8.

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