Thanks SAFEHARBOR, changed to Dolby and dropped around 800MB. I'm still very much on a learning curve and unsure as to just how good dolby was and thought I needed some sort of specialist Dolby audio recorder to use that setting. Seems silly now to assume that, I know.
Thanks for the info about the black bars. I have CS5.5 but I can still change it. I seem to lose a slight bit off the top and bottom but even before I changed that setting my DVDs come out without black bars so not sure if that's just the TV doing the scaling or it's just the way Premiere and Encore show me the video.
Are there really any benefits to choosing PAL DV wide progressive in this case? I assumed automatic wouldn't make any difference. In fact, I was never sure if my camcorders were DV or HDV - I assumed the former though. Not that I know what difference it would make if I chose the wrong term.