I also use 1980 x 1080 AVHCD and in "Settings >> Preferences >> General" I have a tick in "Show message when inserting first video clip in timeline"
what that means is that as I put the first video in the timeline a message pops up and asks me if I want to set the project properties to match the video - saying Yes to that automatically makes the project properties identical to those of the video so you have an exact match .
I then edit my project and when all is finished if I am going to make a standard DVD (as like you I often do) then when I go to 'Share' I choose to make a mpeg-2 video with the following properties :-
MPEG files
24 bits, 720 x 576, 25 fps
Upper Field First
(DVD-PAL), 16:9
Video data rate: Variable (Max. 8000 kbps)
Audio data rate: 384 kbps
Dolby Digital Audio, 48 KHz, 2/0(L,R)
I then play the resulting file - usually in something else like Windows Media player to check quality.
Then I open VideoStudio with nothing in the time line and go via Share to the create DVD module at which point I import the new and tested mpeg-2 and continue to burn to disc.
As regard proxy settings - it is best not to use it unless you are having problems with editing - it has no affect at all on rendering times, using it will not speed up the render - if you do decide to use it then leave them at 720 x 576 (which is a PAL setting) - but just a note - the creation of proxy files is not instantaneous - depending on the length of the video in may take minutes to happen for each video - so don't expect to put the file in the timeline and rush away with the proxies - once a proxy has been created an additional little icon is added to the library thumbnail (see image below)
The final step in my procedure is that when I get to the final 'burn' window in the create disc module I do not put a DVD in the drive - but uncheck the 'burn to disc' option and instead check the Create disc image option
this will then create an .iso file which you can check in the free VLC player which will play the iso exactly as if it was a disc with menus etc - when you are happy with everything you can go back to VideoStudio and use "Tools >> burn from disc image" to burn a DVD knowing all will be good.

- Thumbnail with smart proxy symbol.PNG (6.98 KiB) Viewed 2380 times