Power VCR II non compliant MPeg2?

Hi All,
I have downloaded the demo of Power VCR II, which I intend to buy if I can get it to capture directly to DVD Mpeg2. There is a template you can load for PAL DVD, yet when I try to author it using ULead Movie Factory, it tells me it is not a DVD compliant MPeg file.

Does anybody know if it is possible to capture directly to DVD compliant files with this app?

I'm using a PCTV card, a PIV 1700 processor and have 256MB RAM.

Thanks in advance

Ulead Movie Factory uses only the default size and suond settings.
pal vcd: 352x288, 224kB/44,1KHz in audio (total 1150Kb/s)
pal svcd: 480x576, 224Kb/48KHz audio
I'dont remember the DVD-SETTINGS.

:D
dilbert