Rendering with YouTube profile creates choppy audio

Installed: 1:0.7.8-0.0

Installed: 1:

I have an old Olympus P&S camera that I took some video with this weekend. When I double-click on the clip in the Project Tree it says this about audio:
-Audio codec: PCM unsigned 8-bit
-Channels: 1
-Frequency: 8000

If I render my project with the YouTube 640x480 profile, either 1 or 2 pass, the audio skips, hangs, chops, etc. Video is fine.

Audio is fine if I use the H.264 or DV NTSC 4:3 profiles, but the size of the final video is much bigger.

Can anyone give advice on how to edit the YouTube profile to not chop up my audio?