PE 9 - Why is my exported file larger than the source?

Hello
I am new to Adobe Premier Elements 9. I have a Digital Video Recorder connected to my television. It produces MPEG-2 TS VIDEO FILEs. I want to import these into PE9 and just cut out the ads.
I tried with a source file that is 1GB in size. I imported it and removed the ads but when I export it using Share > Computer and select settings that mimic the source I stll end up with a 3.7GB file. I thought it should be smaller that 1GB because the video is now about 5 minutes shorter.
In my Export settings I chose:
Multiplexer: TS
Audio: Left it untouched
Video:
Basic Video Settings:
Quality = 4
Everything else set to Automatic (based on source)
Render at Maximum Depth left unchecked
Bitrate Settings:
Encoding: VBR, 1 Pass
Bitrate Level - Custom
Min, Target and Max all set to 15
GOP Settings:
M Frames: 3
N Frames: 12
Is my DVR better at encoding/compressing video that PE9 or are my export setting wrong? Shouldn't the exported file be less that 1GB?

As Steve points out, there are two parameters, that affect File Size:
Duration
Bit-Rate
With a fixed Duration, the only way to adjust File Size is lower the Bit-Rate (lower Bit-Rate = smaller File Size, but at the expense of quality.
Now, some CODEC's will allow one to use a lower Bit-Rate, but still retain perceived quality, better than some others, but it is still the Bit-Rate, that affects the File Size.
Some Export/CODEC options will list the Bit-Rate directly, and MB/sec., where others will instead have a "quality" setting, and the Bit-Rate's MB/sec. will not be directly shown, but will relate to some quality setting.
One major consideration is what is to be done with the resulting output file. If it is to be used for additional editing, then I feel that File Size is not a big issue, as I want the ultimate quality. If one is delivering the output file, then there are many considerations, from the platform of the recipient's computer, to the player being used, to the necessary quality of the file.
Good luck,
Hunt

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See the detail logs information:
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<
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1.26% done, estimate finish Thu Feb 1 16:12:36 2007
1.69% done, estimate finish Thu Feb 1 16:12:36 2007
2.11% done, estimate finish Thu Feb 1 16:12:36 2007
�
87.65% done, estimate finish Thu Feb 1 16:14:54 2007
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>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
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PE 9 - Why is my exported file larger than the source?

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