You probably should have captured it at actual LD resolution though, your card should be capable of that, so I'd give it another go in you have another 30GB of disc space.
There are a number of lossless codecs on the market that will give you a lower file size with zero quality loss. You can use hufyy, but grab an older version, the latest is a crachfest, or the one frome http://www.alparysoft.com/prod/compression/index.php
They require you to register it, but it is totally free.
It will be interesting to compare your version with the current bootlegs.
What are you going to use to encode it to DVD-9?
Something else I have been toying with is doing a WMV-9 set for PC users as it is noticably better quality than DVD at the same compression levels.