MPEG2 reencode to h.264 best settings for playback via Xbox One?

My DVDs rips do not look good when played on plex via xbox one. I believe this is due to Plex needing to transcode the MPEG2 to h264.

I’ve tried re-encoding to h264 via handbrake but can’t seem to find good settings to where the rip would look as good as if i played the DVD directly in the XboxOne. I can tell there is a degredation of quality with my eye.

What handbrake settings do you use to reencode your 480p MPEG2’s to h.264?

I actually have great success encoding everything in Handbrake in h.265 instead of h.264 since Xbox One supports both. I do this with both Blu-rays and (mpeg2) DVDs.

Here are my settings using Handbrake 0.10.5.0 64-bit:
Container: mkv

Picture:
Anamorphic: Loose
Modulus: 2
Cropping: Auto

Filters:
Detelecine: Off
Decomb: Decomb (Default)
Denoise: Off
Deblock: Off

Video:
Codec: H.265 (x265)
Framerate: Same as source (variable)
Optimise Video x265 preset: Medium (Tune: none, profile: none)
Quality: Constant, 17 (but tweak as desired for filesize/quality balance)
Audio: First English track, Codec: AC3 passthru (personal preference, I always keep the 5.1 DD but you may not need it)

Playing all my movies on Xbox One using those settings usually gives me a file about 70% smaller than the source file but no noticeable loss in quality (nearly perfect with DVD rips, sometimes dark scenes in Blu-ray show some mild banding but otherwise look excellent).