I think you have got yourself into a real "pickle" here. What is the problem? The problem is, that there IS no problem.

Let's take the Encoding thing first.

My guess you have created a purely VIDEO stream MPEG. Meaning, you haven't included the audio. Why are we offered this option? Simple, it is so that we can create a separate AUDIO stream encode that will take up even LESS space on the DVD platter. And what do want from creating DVD Encodes? An ability to free-up more space. Why do we want more DVD space? We want more DVD space so we can make longer projects that produce MORE quality on FASTER bitrates. But what do want from this process? The best quality we can achieve!

So, my method of MPEG encoding, which I've used successfully used over the past 3 years, has been to create:-

#1 - MPEG Video Stream

#2 - AC-3 Audio Stream

This you can do straight from within Vegas. I keep the naming of the files the same, that is:

Video: MyProject.mpg

Audio: MyProject.ac3

I create them in the same folder and point DVDA4 at 'em.

No problem here.

Now the "Previewing" and the 0.0dB info your are reading off. There are 2 basics Previews:

#1 - Previewing Captured clips from within Explorer. These will give a DATUM of 0.0dB when played because this, or less, is the level at which, will give you the distortion and clip free audio.

#2 - Previewing Captured clips from Timeline. The Timeline is the place where you will mix and perform major audio adjustments. At the moment, while I write this, I'm clearly hearing a project of mine that is registering -9.2 on the LEFT channel and -7.3 on the RIGHT channel. My Vol on the Timeline for this ONE Audio track is 0.0db. What ever I do to the Track Fader OR the Master Fader, -dB or -dB, will affect the Output. This is a good thing because if you were to have more than one track of AUDIO then any adjustments to each and everyone of the tracks would have an accumulative affect on your final output. Meaning, say you have 4 tracks of audio and you have checked that each and every on of them plays within the limits NOT giving clipping or distortion, but, now here you come and adjust upwards just ONE or several of the tracks. You can immediately see and hear any distortion because you adding EXTRA sound energy to the overall audio mix.

OK, Previewing captured clips is different to previewing TImeline Events for the reasons I just outlined. Adjusting Previews in the way you say will give you the results you have noted.

There is no problem.

I suggest that you experiment further and, like I, read some "simple" tutorials and explanations of the ways in which you do audio previewing and mixing. It is time well spent!

I hope this helps.