Belbucus or boba feta: Have you been able to figure out why the PCM .wav files are causing those error messages (listed in the post above) when compressing them into flac files and why they didn't want to work in winamp until after going through the flac compression and then uncompressing them?

As far as the bit-rate issue, I certainly wouldn't want to lower the bit-rate of the video on the 2006 Star Wars DVD set, we need all the video quality we can get.

Better to take the PCM soundtrack and convert it into DD 2.0 with a straight 448k bit-rate. That will sound much closer to the PCM track than the default DD 2.0 soundtrack and it will not cause any problems with the going over the max total bit-rate allowed for DVD.