Mpeg2 or h.264

I just noticed in Compressor when using setting DVD Best quality it defaults to a Mpeg2 video format rather then a h.264? Isn't H.264 a better quality??

The DVD specification is mpeg2 video (noted a m2v from compressor) + ac3 (or AIFF) audio muxed (mixed) together.
The DVD Studio Pro manual has a very good section explaining the terminology and structure of a DVD format. You'll find it enjoyable and enlightening.
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