Surely, without compression you'll waste all your hard drive very quickly. Video on a classic video-DVD is compressed with MPEG2 - a lossy codec.
You should read carefully this part of the manual:
http://www.thedeemon.com/VideoEnhancer/manual.html#codecNote that Video Enhancer can now only write AVI files. You can write such file to a data-DVD but not all hardware DVD-players will be able to play it back. If you need a video-DVD, you should seek for some other software for this.