Using compressor to create a 180 minute DVD from VHS

Hi,
Converted some files across to my hard drive using Elgato Video Capture.
I asked for the file in H.264 not MP4 (although end file is .mp4?).
Was using toast to convert the file to MPEG-2 for DVD use, but wasn't greatly impressed with the results.
So I am using compressor instead. A couple of questions though.
1. Compressor only has a setting up to 150 minutes. Do I use this?
2. How does Compressor understand the estimated minutes in the encoder section? i.e. when you change the bit-rate, the estimate at the bottom of the screen changes. I am a little confused as I know a dual layer disk will allow up to 8.5GB. But at 2.7 Mbps it comes in at 147 minutes, but only 4.27 GB. Surely this means I can up the bit-rate significantly getting better quality as I am going to burn to dual layer?
3. What does it mean when it says 'allows 145 minutes/layers of video on "DVD-S" - I'm burning to a DVD+R...
4. They are all shot 4:3 and Elgato has transferred the file to a 640x480 aspect ratio. But compressors standard setting is 720x576 - do I need to change this to match the file? i.e. 640x480?
Thanks

Elgato should be able to capture full res SD 720x576. If not you should consider another converter or capturing with iDVD.
All PAL DVD footage must be converted to 720x576 MPG-2 in order for DSP/iDVD to make a DVD.
The reason there is no 3 hour setting in Compressor is because the software isn't able to make decent looking compression with that amount of footage. This is also why studios never put 3 hours of features and extras on a standard DVD-5 - they always make a DL disc.
Some DVD-R recorders will do an OK job of this and Toast has a feature that will recompress your dual-layer DVD(more than 4.3GB) to fit on a DVD-5 but there are many variables to this equation and no real hard and fast answers.

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