You can create a new profile in the Create module in which you can choose a bitrate that will fit the file onto a standard DVD. First select MPEG-2, as you are doing already, then click on the '+' button to create a new profile. In the Video tab you can set new values for the maximum and minimum bitrate (for variable-bitrate encoding) and set other properties if required. You can then save the profile under a new name for future use.

If you want to find out what bitrate to use there are free calculators available. I use Mad DVD bitrate calculator.

Be aware that a lower bitrate will start to degrade the video quality, however the bitrate needed to give around 2 hours of video should still be quite acceptable. Regards,
Mike

Home-build system:
Intel Core i5 Quad Core 3.3GHz, 2 x 4GB DDR3 1333MHz,
Asus Nvidia GT440 1GB, 2 x Western Digital WD10EARS 1TB, 1 x Seagate ST1000DM010 1TB,
Windows 7 Prof 64-bit, PD 9 Ultra 64, PD 13 Ultimate 64

Hello -- thanks for the reply -- so as I said I am new here so for the most part I have to re-rip the video to meet the dvd limits?

I'm not sure I fully understand what you're trying to do. In order to make a file that will fit onto a standard 4.7GB DVD you need to add your captured file(s) to the timeline and edit/trim as required, then go to the Produce module and, using the custom profile, produce to an mpeg file which you can then burn to disk using either the Create Disk module in Power Director or a stand-alone authoring application.
Regards,
Mike

Home-build system:
Intel Core i5 Quad Core 3.3GHz, 2 x 4GB DDR3 1333MHz,
Asus Nvidia GT440 1GB, 2 x Western Digital WD10EARS 1TB, 1 x Seagate ST1000DM010 1TB,
Windows 7 Prof 64-bit, PD 9 Ultra 64, PD 13 Ultimate 64

Hello –

Thanks for your reply and sorry for the confusion

Yes, I do what to get this video I captured to a dvd a dual-layer dvd (9g) would be ok too – my question is with the *.mpg that I have now – since it was records without the setting you noted, there is there a tool or process it so that its size skrinks under 9g – if not then it seem that I would have to re-capture it with the setting/profile you noted?

It sounds as if what you want is to decode your mpg then re-encode with higher compression to fit it onto your DVD. I don't know if there are any third-party applications that can do this. The method I described above is the only way I know how to do it. If you have a mpg file that's ready for burning but just too large then load it into the PD timeline and produce it again to a different bitrate.

If that's not what you want to do I think we'll have to hope some of the other more knowledgeable folks on here can suggest something. Regards,
Mike

Home-build system:
Intel Core i5 Quad Core 3.3GHz, 2 x 4GB DDR3 1333MHz,
Asus Nvidia GT440 1GB, 2 x Western Digital WD10EARS 1TB, 1 x Seagate ST1000DM010 1TB,
Windows 7 Prof 64-bit, PD 9 Ultra 64, PD 13 Ultimate 64

Thanks for all the info