Layer Breaks in ENCORE CS3

The advice I seek is regard to layer breaks in ENCORE CS3.

1. I have set the Disk Size to 8.54 - and it says there is 3.84GB free

Question: Does this offer an opportunity to res up the video?

But more urgently,

2. In the same Disk Info box, the instructions are to select "automatic" or "manual" That seems to be straight forward, after reading the help section "Specify a layer break for dual-layer DVDs".

However, I can't find any diagramme in regard to the following:

Under the size designation (8.54GB)in Disk Info Box there is a designated choice between Side One and Side Two.

Since the break is between side one and side two:

Question: Do I choose Side One or choose Side Two?

I can't find a reference, or don't know how to interpret:

"Encore creates the layer break (also called layer transition) between timelines or menus, making a smooth transition (since it jumps layers at a point where no content is playing)"

Question: Does this mean selecting the layer from which the break occurs, or the layer that it jumps to (eg. Layer 2).

I understand that once automatic is selected, it can't be reversed.

Thanks for your collective wisdom and patience.

Cheers,
Bill in Toronto