Making best quality PAL DVD

I have just made a 24 minute TV pilot in Premiere Pro CS4. I exported the pilot as an .avi, then imported it into Nero to author a DVD. However, the video quality on the final DVD was terrible (even though the video quality in the .avi file was fine). I've decided to dump Nero... Nero just got burned.
I am using 4.7GB DVDS. I am going to give Encore a try. What settings should I use in Premiere CS4 and Encore CS4 in order to make the highest possible quality DVD?
The files are in 16:9 format, and as I am in Australia, they are set to PAL.
The DVD will also include a 3 minute film clip as a bonus feature. I want the DVD to have one menu, with the pilot and the extra feature as two seperate buttons. I want a movie file to play in the background of the menu.. is it possible to have a movie in the background of the menu, and if so how?
If anyone could help I would greatly appreciate it.
Thanks for your time!
-Robert

First, some reading...
The individual CS5 pages also have links to the CS4 user guide pages
CS5 User Guides - online and PDF (see link in upper right corner at individual pages)
http://blogs.adobe.com/premiereprotraining/2010/08/help-documents-for-creative-suite-5-pdf -and-html.html
When you open Encore and import the AVI for authoring, you will want to have your encoding set to Automatic, so Encore will calculate the "best fit" on your disc at the highest possible data rate
Read the user guide PDF from the start... you may jump around if needed, but the guide is laid out to get you all the way from opening the program to creating a disc
Look for Motion Menu in the help and user guide for a movie in a menu
I wrote notes for myself (I do this as a hobby, with several months between projects, so needed a way for a quick reminder) and put a copy on my web site for anyone else who is just starting http://www.pacifier.com/~jtsmith/Encore.txt
And, some other reading
Even if you have a later version, this is a good book to learn Encore
http://www.amazon.com/Focal-Easy-Guide-Adobe-Encore/dp/0240520041/ref=sr_1_1?ie=UTF8&s=boo ks&qid=1277266925
NEVER use Overrides http://forums.adobe.com/thread/860691?tstart=0
For CS4 you must update the Roxio component http://forums.adobe.com/thread/400484?tstart=0
More on Encore and Roxio http://forums.adobe.com/thread/528582?tstart=0 or direct to
http://kb.roxio.com/search.aspx?URL=/content/kb/General%20Information/000070GN&PARAMS
Long File Names or odd characters cause problems
Read http://forums.adobe.com/thread/588273
And #4 http://forums.adobe.com/thread/666558?tstart=0
And This Message Thread http://forums.adobe.com/thread/665641?tstart=0
Encore "No Drive" Error http://forums.adobe.com/thread/569230?tstart=0
Things and Software to AVOID when authoring/burning a DVD
Start --> http://forums.adobe.com/thread/608660?tstart=0
#2 has WHY Explained http://forums.adobe.com/thread/607390
Plus http://forums.adobe.com/thread/562941?tstart=0
Create an ISO (Encore) or folder on your hard drive (Encore or Premiere Elements) and then use the FREE http://www.imgburn.com/index.php?act=download to write files or folders or ISO to disc (send the author a PayPal donation if you like his program)
Use Taiyo Yuden single layer or Verbatim dual layer
Or Falcon Pro for inkjet printable dual layer
http://www.discmakers.com/shop/ItemDetails.aspx?ItemID=DVD034-00010

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