Nero 6 will create DVDs but you will need to use ReCode to produce the necessary files - do it over night as it takes for ever,
I have to say, I'm not impressed with reCode - I always get time shifts between video and audio.
TMPGEnc can convert to compatible MPEG formats (better), which you should then be able to import into a DVD Video project.
There is a free version fo TMPGEnc (see
http://www.tmpgenc.net/e_main.html) but it is not very friendly.
If you want a good (and easy to use - but unfortunatley not free) DVD Authoring package try
http://www.pegasys-i.../en/product/tda.html. It is written by the same people as TMPGenc but is the commercial version. If you want to use non standard files you need to use TMPGEnc to encode the files correctly, or better purchase the bundle with TMPGEnc XPress 3. They aren't fast programs but they do produce discs that work every time. There is a new version out now (which adds a few bells and whistles) but is more expensive. It is being marketed in the the US under the name TSUNAMI, see
http://www.tmpg-inc....m/product/index.html - unfortunately they like to use boxed products in the US market so you can't get a download version of the MPEG editor etc. but you can use TMPGEnc XPress 3.0 which is dowloadable and functionally equivalent (and the UI is virtually identical).
The other place you could look for other software that may help is
http://www.doom9.org (it's not as grim as it sounds).
Doom9 is primarily aimed at making DVD backups, but they have LOTS of really useful tools for producing DVD compatible stuff too.