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Have only tried making a Nero Digital file (from T2 Directors Cut). At 2.27 I had first compressed it using ReJig down to fit a DVD-R. Just for fun, I tried to do a Nero Digital from that. Recode decided to do a 2 pass encode (letting me in on that secret once the first pass was finished). Each pass in well under 1 hour (40-50 min).
At a file size to fit on one (1!) 80 min CD, the quality is just brilliant! I'm amazed - Ahead has really succeded in this part of their bloatware. I hate to admit it, but it outperforms both DivX and XviD by lightyears.
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