I keep getting interrrupted today. I thought I had finished this note.
I am confused. At first I thought you were good to go for DVD. You did tests with short bits and they looked okay. And for DVD only, you can produce an acceptable DVD. And you are doing that by exporting an MPEG2-DVD file from Pinnacle. Right so far?
But you then exported HD files that are not being re-transcoded well by Encore. I just don't think that is what you should do. I think you are trying to create a "archival master" from Pinnacle that you can use later to create both DVD and Bluray. Is that right?