If you plan to use your backup to create a new DVD, you should create files in "MPEG 2 DVD" format. DVD authoring software can use MPEG 2 files to create your new disc. Use "MPEG 2 DVD NTSC" if your DVD will be played in the United States, and "MPEG 2 DVD PAL" if it will be played in Europe.

If you plan to play your backup files on PCs, rather than burn a new DVD, Any of the high-quality video formats will be effective. For maximum compression (small file size) and high quality, the "MPEG 4 Advanced Video Compression" format. To keep full DVD quality in your backup files, click Customize and increase Bitrate to 6000 Kbps.