Yes the limit in the dvd standard is 9.8mbits but often you will get playback problems with dvd-r/w media if you go much higher than 9mbits. I don't think checking this option will have any effect at all on the actual level of your bitrate spikes. What this setting does, among other things, is set your nominal bitrate to 9.8mbits, which may be higher than what you set the max to. I think this nominal bitrate is basically just a label, and doesn't really mean much. As far as I know using this setting won't cause any problems during playback, but I have heard of dvd authoring software rejecting mpg's encoded with this setting enabled.