MPEG2-DVD question

I have a premiere CS5 project with HD 1920x1080p 24fps.  I have (2) 45 minute timelines and I am using Encore to author my DVD.
Please help me understand the best way to approach this.
My first thought was to import both premiere timelines into encore and create the dvd.  The resulting project was about 6GB so I used a Dual Layer DVD-9 for the burn. 
From reading comments here, I got the impression that exporting from Premiere and creating MPEG2-DVD files might be a better option for better quality.   I did this using Match Source Attributes and created two export files which I then brought into a new Encore project.  The resulting project totals about 4GB.  
Did I do this right?   If this seems right, is the quality going to be the same using the second method?   If the second method is good, I would be happy as I would be able to use less expensive single layer DVDs vs dual layer DVDs.
Please let me know the best way to approch this.
Thanks
Ted

Ted,
Glad you're asking these questions because they are exactly what I want to know too.
I have been importing sequences from Pr, then using the Progressive Hi Q 7Mb VBR 2-pass preset, which looked to be the highest quality preset.
However, after a series of problems (associated with multiple sequences in the one timeline), I re-coded using the Automatic preset.
I compared DVDs produced by the two presets on a high quality player.
I couldn't spot any differences in colour, contrast, brightness, etc, but I could see that when objects moved, the Automatic gave clearer motion! ie, less edge artifacts (can't remember the correct term).
This surprised me because I always thought a 2-pass encode was superior to a 1-pass one.
So, until I find out more about encoding, I'll stick to the Automatic preset for projects I encode in Encore. 
Might try encoding in Premiere Pro  -  as Ann suggests.
Nevertheless, i'd be interested in your findings. 
Thanks
Erik

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