The problem isn't when capturing but when going to burn to dvd. If your burning software allows for a change of settings from "best" to "better" you simply reduce the burn setting to the better. That will see the disk indicator out of space alert disappear. The main problem with burning long videos like movies to disk is the size of the initial file and the processing onto the available 4.2gb seen on most dvd blank media.
You want the quality capture not the better setting for this. The burn setting is the thing to lower in order to shrink the total space used. See if you have that option there.
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