I have found the fix to be using TMPGEnc to make my m2v or mpg after frameserving an AVI through virtualdub.
I tried exporting an uncompressed unscaled 1280 x 720 uncompressed AVI into Encore. This resulted in a 200gb file that wouldn't burn either. It kept causing an error at 2989.9889 sec something about an unsupported framesize during the build.
I am quite annoyed though that it takes using external programs to make professional software churn out professional results. Everyone who makes movies and video wants their images to be sharp and artifact free and software that is intuitive and complete.
I am going to keep using Adobe until I can replace it and I appreciate all that you guys have done and continue to do. May God bless you for your seed sowing.