Just as an extra to what Deacon72 said, more or less the same points is
Movie download issues which also gives some good points.
Nero will need to have the MPeg2 codec in order to burn to DVD. Unless you plan to burn to VCD then it doesn't matter so much. MPeg2 for Nero is a part of their newer versions or a separate product for the older versions of Nero so long as they're not too old that is.