Although DVD is effectively an MPEG2 the structure needed to create a DVD Video disc uses VOB. Therefore whatever app you use all be it Nero or something different you will always have to re-encode your MPEG2 to VOB's before the burning can take place. If you use Nero to do this (yes you can) you will face 2 problems. 1. Nero has a really crap quality encoding engine compared to other apps that are designed specifically for the job (i.e TMPG DVD Author, Sonic DVDit, MyDVD, Neo DVD etc). 2. Its very slow compared to these other formentioned programs and it won't allow you to vary the bitrates beyond its 3 standard settings where the others will.
My advice (for what its worth) :
For passing any MPEG1 or 2 or Divx/Xvid or Avi directly to DVD you want a copy of Neo DVD 5 (currently available on most P2P networks, Overnet, Bit Torrent, EDonkey, Kazaa etc etc).
For authoring you own DVD's from VHS or Mini DV etc then use Sonic MyDVD, again available on P2P networks.
For copying DVD games and DVD5 Videos use CloneDVD (not DVDClone, which is a clone of CloneDVD) or Alcohol 120%.
For ripping protected originals use DVD decrypter (freeware) and for reducing ripped films from DVD9 to DVD5 format use DVDShrink (also freeware).
Think that about sums it up...questions on a postcard to......
P.S Take a look at
http://dvdrhelp.com for further guides
Myk