Rahisha first of all define what is a DVD... are you talking only of Video or both Video or audio ?
According to MPEG2 standards a High-quality picture is supposed to be at bit-rates of 6.0 Mbps and above (e.g. Harry Potter dvds are at this bit-rate and the BTTF dvds are at 9 Mbps). A dual layered DVD generally has a space of 9.4 GB. Lets do the Math...
Movie time = 180 mins = 180 * 60 secs
DD 5.1 = 448 Kilobits/sec = 448*1024bits/sec
Total bits = 448*1024*180*60 (for audio)
This roughly comes to around 600 MB (approx.)
That leaves us 9.4 * 1024 - 600 Mb for encoding the video 
which is approximately 8.8 GB
Total seconds that can be encoded = (8.8 * 1,073,741,824 * 8 bits) / (6 * 1,048,576 bits) which is approximately equal to 12015 sec = 200mins and 30 secs.
Which is definately greater than the 180 mins that we sought to encode.
This implies that a Hindi film of running time 3 hrs can easily be encoded at MPEG2 specified high bit-rate with proper Dolby Digital 5.1 audio.
How how adjust the adjust the bits for I-pictures and P- or B-pictures determine how good your final product will be.
If you allocate less bits for I-pictures then your pictures tend to be soft. If you allocate less bits for motion, then you get the so called motion-blur artifacts. As a result what generally happens is that color is quantized heavily. 
So if you want more color in your images then you should go for higher and even higher bit-rates. ! (e.g would be Ben Hur and 10 commandments.. flippers or 2-discs needed to encode the movie).
Hope this explains 
