I'm working with the best setting of the x264 files at the same time, but I can only have 1 answer: try it by yourself. Different person have different expectation for the quality of the video. It is hard to say the exact setting. But Fairuse wizard does handle most of the settings for you. What you should do for it is to look at the target file size and click 2-pass encoding, then you should get the best result with the files size you want.

You can simply just calculate how many movie you want to store in 1 single DVD and you will know the file size for each movie.

For the normal DVD player, it can only play DVD with a formal format, named DVD-Video, which you need some special DVD authoring software to make the DVD before you burn. Some of the DVD player from China and play avi files with Divx format, hence you can burn the DIVX format avi files directly to the DVD.

There are so many video format we can use, name as codec. Basically if you want to play the video with using DVD player, you don't need to bother anything about codec. Just may the formal format of DVD / VCD, then it's fine. Try to look at www.videohelp.com and learn more about the format of DVD and other codec.

Basically, if the source is AC3, you don't have to re-encode the audio, just make it straight copy/rip from the source. Besidem FairUse Wizard should has the internal encorder for AC3

1. You can use the software to rip the DVD video into Hard disk with a single iso file, then use Fairuse Wizard to convert the DVD to x264 codec video. x264 is just the same as H264. Otherwise you may need to use some software to convert DVD to MPEG 2 and audio and convert to H264 with H264 Encoder, which is a complicated process. Try to look at Fairuse and see what you can do with it.

I think you are talking about something like the video streaming technology, which is not in this area of forum I'm afraid. You may looking at some kind of real media server, but I'm not sure. Sorry man~