Not free and I haven't tried it but this looks cheap and might do what you want
http://www.svcd2dvd.com/You can try the demo version.
There is also Microsoft's Photo Story 3 (you'll find it in the Windows XP downloads on MS's website - sorry haven't got the link). This will produce slide shows from graphics files and if I remember correctly burn them to DVD with menus. You don't have control over the menus though.
Sorry I can't be more help but I haven't found anything free and ended up shelling out for something.
It is worth saying I think that with DVD Authoring you tend to get what you pay for - there seems to be little out there related to MPEG encoding to DVD (which is what you are looking for though it doesn't seem like it) which is better than junk.
Another program (a bit more expensive but does work well) is ULEADs CD and DVD Picture Show. You can build entire CDs and DVDs of slide shows, and add animation, graphics etc. and use templates to produce menus.
There are very few programs (even at expensive prices) that give full control of menu building for DVDs as it is sucha complex business. Most are based on some sort of template system. The best I have found at a reasonable price is TSUNAMI-MPEG DVD Author, but it isn't cheap and is still based on templates. Sony's DVD Architect (formerly Sonic Foundry's product) is very flexible but a silly price.