Toast is the way to go!!! Preferably Toast 6! It will convert & burn most formats (excluding wmv & divx I think.) You can select the Video tab & drop your file in & after you press burn, it will convert it before burning. Oh select the advanced tab & select DVD-Video.

If you already have the mpeg2 muxed files in a video-TS folder & an audio folder, you'd select data tab, DVD-ROM (UDF). UDF format is what dvd videos use for compatibility with set-top players.