Different Trascode Settings

Perhaps one of the best places to start looking for information like this is the
excellent "DVD Demystified" website.
See <http://www.dvddemystified.com/> for the main part, and for your
specific question you might want to check out
 <http://www.dvddemystified.com/dvdfaq.html#3.4>

Essentially, Transcoding is what you must do to get your Audio & Video files
into a format that is compliant with the DVD-Video specifications.
Whilst you are still learning all this stuff, I would definitely recommend using
the "Automatic" setting in Encore, as it will make the best possible
fit and quality it can for your project.

htalents,

There are entire university courses and professional seminars that deal with
this exact subject.

Higher bit rates = better quality
Higher bit rates = bigger files that take up more disc space
Lower bit rates = lower quality
Lower bit rates = smaller files that let you put more video on one disc
VBR = generally better quality at the same file size as CBR, but generally only
if the CBR file sizes get too big to fit on disc.

Knowing when to change encoding parameters to get the best result is why
encoding specialists get paid so well.