740*256 has nothing to do with a DVD resolution but it's not a problem, you have DVD as target, that enought : yes 13h is normal.
You can faster a little the things by :
- using "Motion Estimate" as precision method
- configure you Xvid codec to uncheck all postprocessing and use "force YV12" as output colorspace
- ask to tmpgenc to not use windows memory cache (see in environnemental settings) <-- this has ti be tested, it depends on the PC and a lot of things.
- using an avisynth script, even with no filters but just to do the resizing. Tmgpenc is definitely not the tool to use for that.
Note: you have ac3 44.1khz in the source ??? And 29.970 non interlaced ? The guy that did this is a complete nut