hi again,
first of all – AAC audio is not allowed for DVD. according to the DVD-specs you can use PCM audio (wav/aif) or dolby digital-audio AC-3 or finally MPEG audio and DTS audio.
as AAC is not allowed, encore will transcode your audio to PCM-audio or dobly digital audio, depending on your transcoding-settings within your project-settings.
you should use dolby AC3, 192kbit/s for your stereo-file.
have you transcode your files using adobe media encoder prior authoring or did you import the AVI/MOV-files into encore?
if this is your workflow – encore will use it´s encoding-settings for transcoding to MPEG2 and the selected audio!
if you used PCM-audio as transcoding-setting, that will lead result in to much data, as PCM audio have 1.500kbit/s data-rate.
so please use media encoder for audio-and video-transcding.
cheers
danny