I've also been working with lotr, but with the KVCDx2Plus NTSC template. It easily would have fit on 3 80min discs. The only problem was that I encoded with an avs file generated with FitCD, but didn't use the Huffy codec. I got burned with the solarization effect. That was 27hrs of encoding in TMPGenc wasted. I have an old PIII 500MHz machine.
I've installed the Huffy codec, but haven't had yet redone the encoding. Now I'm wondering if I'll be able to get it down to 2 discs with the old KVCDx2 1 disc template. For some reason, I like the idea of working with the 704x480 resolution.
Andy