What is the best way to encode and compress?

I just finished an hour and a half long video of comedians performing. The client wants this to be put on dvd so he can mass produce it. What is the best way to compress this and encode it? Should I buy compressor or can I do it in handbrake? What are the best best settings to make sure it doesnt lose quality? Please advise...

You should be able to get up to 2 hours at least.
The best way is to export as a Master File and drop it into iDVD, Toast or some other DVD authoring app.

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