🚀 go-pugleaf

Can anyone shed some light on how the Mainconcept MPEG encoder that ships with PP2 deals with encoding RGB to the proper luminance range of 16-235?
I�m rendering to MPEG2-DVD progressive (4:3, quality 5.0, 7.0 CBR) from PP2 a track with animated stills for which I have a level effect to restrict the Output White to 16 and Output Black to 235, and the blacks look milky on my LCD TV set.
I have checked the DVD player and TV settings and they don�t have any color stretching (or enhancement) enabled.
After I get the m2v and wav files, I use Encore to burn the DVD, with no further video transcoding.

Because of the milky blacks that I get when I render with the levels effect enabled I initially thought the encoder also adds luminance range mapping on top of my adjustment, but if I render without adding levels, the blacks from the titles section (where I know I have pure black) do look black indeed, but the overall image is over saturated and the shadows seem to be crushed.
If the encoder does indeed perform luminance mapping then my imagery is too hot, but I�d like to know first a definitive answer on how PP2�s Mainconcept encoder deals with this issue�

Thanks!!