if you need to do mpeg-2, and you should only be doing it for svcd or dvd, as mentioned above, then remember to do a 2-pass (or more if possible) vbr encode, and use all the available space on your end medium, for optimum bitrates.

also, what bitrate/format are you outputting the audio as with your final mpeg2? if you're using uncompressed pcm, that'll be the reason the files are so big. mpeg2 will be bigger than anything else anyway, but not bigger AND worse quality.

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