I use FastChannel (I think they have merged now) but some of the issues would be the same. For what it’s worth, I started trying to use DG Systems and was going through the same trial and error you are and got almost NO help from them in working it out. FastChannel, on the other hand, was very helpful and has had fantastic customer support ever since. They have great quality control as well.
Anyway, you can’t use squeeze because it won’t give you high enough Mpeg2 data rates to satisfy the requirements for either DG or FastChannel. Believe it or not, good ole’ Cleaner from Autodesk/Discreet does the job for me. It is the only package I’ve found that works for this particular task without going with a hardware encoder. It will do Mpeg2 up to 20Mbs – WAY more than the 4-8 Mbs for DVD and enough to satisfy quality specs for DG and FastChannel. If you have or can get Cleaner, email me at the below address and I’ll send you the compression template I use for FastChannel – it may not be exactly the same as DG, but it will be close.
Chris Tomberlin
OutPost Pictures
chris_at_outpostpictures.com