well, decoding to wav would give you an enormous file size so i wouldn't do that. just encode to 256kbps AC3 Dolby Digital 2.0 and see (listen i guess :D) if you find the sound acceptable. if you do, then thats fine. if you don't then try a higher bitrate. what is acceptable is quite subjective: best way is to judge that for yourself. I can tell you 256 kbps sounds like cr4p (which i actually don't know, I've never tested it), but you shouldn't believe me or anyone when they make such claims out of the blue. I'm already quite happy with +/-192 kbps MP3 (for most music at least), which maybe other people find horrible. there are no ears like your own. after all, you are going to be the one who has to listen to it. ;)