Encoding AC3 to MP2 with HeadAC3he
Step 1
Launch HeadAC3he.
Load your AC3 file where it says "Source File". Since we used DVD2AVI to demux are audio track, it should automatically insert the delay for you. Next we have to change the "Destination Format" to MP2. Make sure 2-Pass Mode is checked and that its set to "float".
Step 2
Press the "Options" button until you get to the "channel configuration" menu.
At the bottom of the Channel Configuration menu, you can set the downmix type. Select "Surround 2" from the drop down list to encode your audio in Dolby Pro Logic II surround sound.
Step 3
Press the "Options" button again until you get to the "MP2enc Configuration" menu.
Set "Mode" to CBR. The Bitrate of 224 kbps is only for VCD, but for SVCD is can be lower.
Step 4 - refer to the first picture
If you for some reason need to resample your audio to 44.1 KHz, you can check the box to resample it to 44.1 KHZ. I don't usually do this as it lowers that quality of the audio. Even though the SVCD specs say it has to be 44.1 KHz, the chances are that your DVD player will be able to place SVCD's with audio encoded at 48 KHz.
Step 5
Press the "Start" button to start encoding.