I mostly use it in case of emergency , when the clint come at last minute with a DVD .
..... mp4 it's what I use .... ?
I don't see problem of using H264 or mpeg4 , since I using only one layer , and this happen just ICE .
As favorite setting I'll suggest to use the built-in one " FILM "
For the purist of none H264 I'll suggest to use Video Lan Client , not many know that VLC is a transcoder too .
Vlc can export a DVD in mpeg2 .
http://www.videolan.org