Have been using Videostudio for several years now but have only recently started using it to manipulate HD files. I make both Blu Ray and DVDs. My usual workflow is to convert the .m2t file to .mpg using AVS Video Converter. For example, I have a 2hr, 17min HD video that I converted to .mpg. The result is a 4.3GB file. However, when I add the .mpg file to the VideoStudio DVD authoring module, the project size size jumps to 5.33GB. I'm used to a small difference in actual file size vrs. DVD project size but this much makes it difficult to get the appropriate bitrates in order to stay within the confines of a normal size DVD disc.
The image below shows the properties of my .mpg file (above) and the settings for my DVD project. Any help in showing me what I'm doing wrong would be much appreciated.

