Poor quality importing a 3 hour AVI file.

I am importing a 3 hour avi file. Its about 40 gigs. If I view the file outside of Encore, it looks great. As soon as I import it, it gets real choppy, and looks like its been compressed in quality. Is there some sort of compression that takes place even before I transcode the video? Should I import an mpeg version of the 3 hour video instead? The Mpeg version would only be 4 gigs. I am using a DVD9 to record to. Any thoughts would be greatly appreciated. Thanks.

It's probably just your monitor settings. Do you have it set to fit?
Encore doesn't do anything to the source material until you tell it to.

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