What are best Mpeg encoder settings for making DVDs?

In switching from PP1.5 to CS3 the procedure is different for making DVDs and we have to encode mpeg files that later get picked up by Encore DVD build proces. What are the best mpeg encode settings for making the DVDs?
Thanks,
Chuck Taylor

Question:
If you are doing a video that is small enough that you are not worried about size, what is the absolute best quality encoder settings? Would a Continous Bitrate result in a higher quality file generally? VBR is for trying to make a smaller file I assume.
I'm frustrated with even white letters on black titles that have some flicker. I just don't seem to get the smooth quality I desire.
Should I look at a different encoder?
If you output PP3 to an AVI and then import it into encore, isn't there a reduction of Q. due to the save to the AVI file?
thanks.

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