Things to remember about audio tracks.
1. All lossless track can be converted to FLAC and will still be lossless, yet take up less space.
2. FLAC needs to be decoded by the PC before being send to any receiver, that being said you'll be sending PCM to your receiver.
3. All DTS-HD tracks as a core DTS track, taking this over the HD track is simple space saving.
4. All TrueHD tracks as a "core" AC3 track, taking this over the HD track is simple space saving.
5. IMHO +90% of the time, making your own AC3 track from a HD track will give you a higher quality AC3 track. As most AC3 tracks are only 448, VS the 640 you can make from the lossless track.
6. In terms of space saving option your best bet is in this order AC3 => DTS => Lossless. Meaning AC3 be the smallest file, saving you the most VS a DTS or lossless.
7. for your best quality audio always make your "new" audio streams from a Lossless track. Meaning a new AC3 128 from a AC3 256 will not just drop the quality by 50%, but more like over 60%. As your going from Lossy to Lossy (well really the encoder will being doing Lossy => lossless => Lossy, even if it is only it memory).
8. Each stream type has it's own quality settings. For example AC3 comes in settings like 128,192,256,384,448,640 and DTS comes normally only in 768 or 1536.
So choosing a Stream type and a setting that best fits you will also "save" you space. Meaning if you can't tell the difference between a DTS stream at 768 VS 1536. Then choosing the 768 will result in about a 50% space savings over the 1536 track. And if you can't tell the difference between a AC3 640 vs DTS 768 track you *could* save about 30% with the AC3 640 over the DTS 768.
Things to remember about re-encoding.
1. Shrinking or re-encoding to any other lossy format will remove quality.
2. Removing borders for a film will reduce both the final size and require less encoding time, as cropping is faster then processing.
3. When resizing it's easy'est to resize down OR up if you keep the same aspect ratio.
3. To shrink the videos resolution, but "keep" as much of the quality as possible. You'll need to due some basic math + padding. Heres what I mean.
Lets take avatars bluray, It's a 1080p file which means it's 1920x1080p. But let say we wanted to reduce it down to 720P (which would be 1280x720p). Then we would need to figure out are new bitrate is going to need to be. And for this project I feel defining a bitrate over using something like CRF/etc will yelled a closer to "lossless" resize. Now on to finding are new bitrate.
1st we need find the % difference between what we started with and where we are going, so for this example it'll be 1920x1080p->1280x720p.
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1920x1080 = 2073600
1280x720 = 921600
921600/2073600 = 0.44444
So to finish this example with are avatar bluray 1080P->720P. Your final bitrate could come out like this.
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Note : 1 Mbps = 1024 kbps
Avatars 1080P bitrate is : 28.8 Mbps = 29491.2 kbps
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** Real number
29491.2 / 0.44444 = 13105.88928
roundup(13105.88928) = 13106
** But with are padding
29491.2 / .50 = 14745.6
roundup(13105.88928) = 14746