Hey ppl... well I tried what you said and changed the transcoding settings to Dolby AC3 2.0 and the higher quality two pass encoding. After a loooong 3hr wait, its still the same weird audio... sounds like the exorcist plugged into the electric supply.... hmmm, but I did make another discovery....
As my stereo is rigged up to the TV & DVD etc, I turned it on and lo & behold the sound is crystal clear... so maybe its the TV?????????
But how can it be the TV when Its plays fine on the PS2 which is directly connected???
I'm figuring it has something to do with the way my TV is connected, yet I don't have this prob with any other DVD's as yet.
My DVD player, stereo, cable box, and TV are all linked up in sum spaggetti junction kinda way, and i'm not fartin about with all those wires when i can just listen to it on my stereo... but was wondering if sum1 cud give me a clue as too why this is??? I'm totally baffled, although its not of great importance... its just kinda buggin me now!
Thanks anyway for all your help )
I guess Sleepless wont be getting a generously donated DVD player now tho! lol.

LOL did not mean me. I already have a monster DVD player/recorder which plays just about anything and connects to my PC so I don't even have to burn DVD's

I was more thinking of some friend of yours, maybe someone less well off, or someone that just never gets around to buying one.

Glad to hear you are getting it sorted though