Hmm. Never used DVD Santa. Most of the people on the forum have gone over to SUPER, especially since both DVD Santa and Nero started having conversion problems.
It's freeware so your welcome to try it. It might work better. You will have to do it in two steps though. First convert with SUPER and then make/burn the DVD structure on to disk using a program capable of doing this.
http://www.erightsoft.com/S7f01.html (just scroll down to the bottom of the page for the download links.)
These are the settings I used last time:
Attachment 2970
BTW you choose output folder by right-clicking somewhere on screen and then go to "Specify the output folder destination"
Regarding the sound it might be a good idea to identify the format/codec used. You can use this tool for that:
http://www.headbands.com/gspot/gspot252dl.html
Just download and open the program, then drag the file into the screen. It will then display all available info on it. In your case I would especially look at the audio section, as I might help you make the choice of what format to convert to. It will most likely be mp3 stereo at that filesize, but just to make sure.