Help With Video Capture Settings

Well, I just installed a capture card to convert commercial VHS movies to DVD for viewing on TV. but I'm have a bit of difficulty in coming up with the optimum settings. I'm using KWorld's DVD Maker PCI capture card and PVR Plus as the app. I have an older VCR, so I'm using RCA jacks. This is a mono (sound) VCR so I've combined both sound channels of the card to the single channel on the VCR using a splitter (two RCAs into one). The problem is, I'm trying to get the best reproduction without running out of DVD space. I really don't want to buy dual layered disk. I just did a movie that was 2 hrs 10 min long and the file was 5.43 Gigs. The video looked very good on my 17" LCD monitor. Here's a screen shot of my settings. Can I do some tweaks to get the file size down without noticeably degrading the quality? I'm a nubee at this capture thing so any/all suggestions are most welcome. Thanks.

 

Lower the bitrate for the video. It doesn't need to be that high. Have the bitrate 3000 max. You could lower the audio bitrate too. I don't think you have to use an uncompressed audio format, like a PCM wav file, do you?