What type of monitor do you have? Is it a CRT or LCD/Plasma type?
If it's big enough, you might be able to kick the resolution up to 1600x1200 which is near HD resolution (1920x1080).
However for DVD's your monitor is more than adequate since DVD's right now in the U.S. are only in 720x480 resolution.
720x480 is also the resolution used in DV tape formats, so with firewire, you can transfer data from tape into your computer to encode to MPEG2.
The only bad thing with that is that all the DV formats (except for DVCPRO 50) are not in the 4:2:2 subsampling scheme that MPEG2 uses, so your encoder softer has to interpolate everything.
There are also a few other resolutions settings for DVD's
704x480 (704x576 for all you PAL countries)
352x480 (352x576 for all you PAL countries)
352x240 (352x288 for all you PAL countries)
The first two are resolutions used by DVD recorders that you can buy in stores, the last one is VCD.
And then there's the odd ball CCIR 601 resolution for NLE's here in the U.S.
720x486
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