If you're going from VHS to DVD, it's my opinion that selecting a high bitrate (i.e quality) is overkill. Given the quality of the source, a bitrate of no more than 4,000kbps would be perfectly fine and even then perhaps on the high side. I would suggest you set the setting to low quality - from what you say this helps with teh audio/video synch, and if the MPEG encoder is this side of decent, you'll achieve quality to match source. If you can, select a 2-pass variable bitrate.
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