Making best use of space for quality by balancing video bitrate and audio settings?

I have a couple of questions regarding exporting from premiere to encore/encoding in encore. I am trying to create a single-layer dvd where I maximize overall quality by using as much of the disk space as possible. The video is 97 minutes, SD 720x480, 29.97fps, and consists of mostly interviews, as well as b-roll from hd cameras and stills, only a few title card graphics.
1. I can use dynamic link to send the sequence which appears to maximize the available space, however I have heard that using DL is generally frowned upon and I myself cannot tell what settings it is using (i.e. vbr, 2-pass, etc.). Is my interpretation that DL is not the ideal way to go incorrect? If DL is just as good as a separate output, is there a way to find out what settings it is using?
2. I have used a bitrate calculator and tried a Min: 3.5 Target: 5.5 Max: 8 output with PCM audio and I wound up having a little over 400mb of unused space. When someone recommended a Min: 5.5 Target: 7 Max 8.5 output the file size was too large with a single-layer DVD. I read that it is recommended that you use a Dolby audio output instead of PCM if the video is over an hour. My question is is there a best practice for balancing audio and video bitrates and data requirements? I understand that obviously using more data PCM is "better" but is it generally better to go the dolby route and have more free space to increase your video bitrate? Is this the type of audio difference that requires a high-end system to discern? Is the loss in audio data worth it for the benefit of greater video bitrate?
I know its a lot, just trying to maximize the space to get the best overall output possible. Thanks for any help/advice you can provide.
-Nick

As most of my videos are closer to 2 hours usually, I have always used Dolby Digital, since PCM takes up so much space and I'd rather use that space to increase the video quality.
Note that by default, if you bring a .wav file (PCM) into Encore, it automatically transcodes that to Dolby, unless you had specifically changed the default transcode settings in Encore.
A decent rule of thumb for encoding is 560/minutes = bitrate, so 560/97 = 5.77 and I usually just round down a bit to allow for safety margin and menu overhead. This assumes using Dolby at 192k, so I would use 5.6 average bitrate.
Thanks
Jeff Pulera
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Making best use of space for quality by balancing video bitrate and audio settings?

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