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Loosing quality when importing encoded files into Encore

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I created a movie in Premiere Pro and finished it as a DVD using Encore CS6. The movie file exported from Pr is beautiful and clear but when I import it into Encore and built a DVD the quality is gone. I am very new to all of this so please bear with my detailed descriptions.

 

Here are the specifics: My movie is 110 minutes in length and upon export it was estimated to be "8126 MB".

Export settings are as follows

Format: H.264

Preset: Custom

             -Match Source - High Bitrate

             - Video: 1920x1080  29.97 fps Progressive

             - Audio: Dolby Digital

             - Captions: Create Sidecar file .scc

 

The video file ended up being 7.47 GB when finished and played beautifully clear.

Then, when I imported both the video and audio files into Encore and even with added menus with motion the size is more than halved.

I open up the Build panel and it estimates my project size as 3.85

I tried going in to the project settings area but didn't have many options. The ones I played around with didn't affect the file size either.

 

Could you please help me know what I'm doing wrong?


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