visit doom9.org and a whole new world opens for you (or visit the relevant sub-forums on cdfreaks)
do some reading about the different transcoders and recoders that are available and you will find out that the program you use isn't exactly the most popular and best solution out there.
If you want a free soltion transcoder check out DVDshrink (great solution if the needed compressionlevel isnt that high) or else take a look at clonedvd2
I really like the results of recoding with CCE on larger movies that need more compression, but CCE is a bit harder to use (because it definetly isn't a one-click solution)
burning the disk doesnt affect the picture quality of your DVD