Well, the rule of thumb is garbage in garbage out. If it’s fairly bad quality VHS then options to speed up the encoding will ultimatly show up as artifacts in the DVD compliant mpeg-2.
Use Compressor, not Toast, not DVDSP.
Render out a 30 second QT movie that is more or less a srepresentative of the overall VHS tapes as far as quality, camera motion, color intensity, anything that will be affected by the compression.
Do a few tests at various bit rates. VBR will take longer than CBR, so if the size of the encoded file is not an issue use CBR. If you’re trying to squeeze as much possible on a DVD use VBR. Try bitrates of 5,6,7 and 8 to see what the lowest bitrate you can use while still outputting acceptable video
Generally you sacrifice quality for speed. I have a feeling that if you opt for the speed over quality option, considering the source footage, you may be dissapointed with the results.
When you render out to a QT reference movie, what codec are you using?
My suggestion, find a bitrate that produces acceptable quality, set up a batch to compress a few files and sleep, go get food, just get out for a while. I like to set up a batch before I go to sleep. Hope that helps a little.