AVI to DVD w/CCE, Resulting Bitrate Too High?

Every time i convert an AVI to DVD using CCE 2.70 and then try to author with TMPGEnc DVD Author 1.6, this message pops up:
The combined bitrate of the clip exceeds the upper limit for a standard DVD.
The combined bitrate of the video and audio is exceeding the upper limit for a standard DVD.
The current bitrate is video: 9800kbps, audio: 256kbps, combined: 10056kbps.
The combined video and audio bitrate can be no more than 9.848Mbps (9848kbps).

I checked my clip in GSpot, and sure enough, it says the bitrate for my video is 9800. I don't understand why this is, since i encoded with CCE with the following settings:
MPEG 2 for DVD
Multipass VBR(4 passes), V/C=24
Min Bitrate - 500
Max Bitrate - 9000
Avg Bitrate - 6085

Some info on the AVI clip i was trying to convert to DVD:
Codec= XviD
Size= 700MB
Bitrate= 953kbps
Framerate= 29.971
Aspect Ratio= 4:3
Resolution= 512x384
Length= 1:29:50

What could i be doing wrong to get a final resulting file with a bitrate of 9800kbps?

 

Does this apply?

Q. MPEG files encoded by CCE fail in authoring. Why ?
A. When VBR encoding in "DVD" mode, CCE writes 9,800kbps as max bitrate at the sequence header for more flexible bit allocation. (Note that actual bitrate does not exceed your max bitrate setting.) Some authoring softwares seem to calculate the bitrate for a DVD using this 9,800kbps as video bitrate. And when multiplexing with PCM audio, they consider the total bitrate out of DVD acceptable range 10.08 Mbps. To avoid this problem, please select "MPEG-2" mode instead of "DVD" mode. Then the max bitrate on the sequence header will be the value you specified.