I need some straight talk about PCM vs. AC3

Hello,
I am getting conflicting messages about which type of audio to use, the PCM audio (AIFF/WAV) or AC3 (Dolby). Several posts on here swear that you should always use AC3, that it helps with playback issues. But when I preview both clips in DVD SP4, the AIFF sounds way, way better, the AC3 is hushed and tin-can sounding? Why, if my total assets going to disc are only 2.2. GB would I not use the AIFF files since they seem to sound better and there is plenty of room on the disc? Thanks for your help.
Paul

I do appreciate your insights aspalex, but the tests I have done here do not seem to indicate this to be true about the AIF file and the AC3 sounding identical. I mean, how could they, one file is 45 MB and the other, the AC3 has been reduced to 5 MB!! Something has to give, and I can hear the difference. Now if I go and set all the levels higher in FCP then maybe the AC3 will be at the same level. I have never cared much for Dolby for this reason, it is doing some sort of compression to get that file so small. I remember back when I had a Kenwood tape player in my old semi-automatic Honda Accord (yeah, that was some kinda car :P ) and it had a Dolby button, before you pressed the button for Dolby you could hear the treble real good (as well as the static), after pressing the Dolby button, the sound was more "muted" but the static was gone. It seems the same thing is happening here.
So perhaps it is more an issue of DVD player compatibility overall. If someone says to me that if I use PCM it will fail in my old Apex DVD player but not in the new Sony DVD player, and if I use AC3 it will never fail in any drive, then that would definitely swing the vote in favor of AC3.
I can definitely understand someone using AC3 if space is a serious issue because the files are definitely smaller, and the quality loss is indeed very small (though I can still hear it) and that would help tremendously (such as Javier72 on his 8 GB DVD!). However, in my case space is not an issue at all, I just have 2.2 GB, and I want maximum quality on video and audio. But if I MUST use AC3 simply for the sake of player compatibility then I will.
Does that make sense? Am I missing something important?
Thanks to all,
Paul

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