i was browsing and found this statement "The DVD MPEG2 will lose quality with every encode." was wondering if everyone agrees on this?
After capturing in mpeg2 to the PC I would only risk one encode (to XviD) to avoid any kind of obvious degradation. I have encoded twice on occasion (from XviD to DVD using DVD Flick) with very good results when making DVDs for friends, but would have preferred to have used the original mpeg (deleted for space reasons) as the picture tends to look a bit 'worn' after the two encodes.
After a couple of encodes you're more or less stuck with what you've got. I have used the odd filter in VDub- but only on avi's. Sharpening and brightening the picture usually.