I captured some clips using power vcr II Pal DVD capture

Tried to create a dvd with menus and stuff to access the clips, so I could watch them on my dvd player.

My Problem is software related

Ulead mpg movie studio 2
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It can't handle my clips.
2hrs of dvd quality video = 5.5 gb oversized
so only 1hr 40 mins can be used

tmpgenc dvd author1.5.15.49
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Complains that my captured clips are not dvd complient and will no allow me to add my video files. the exact error is "A video sequence header is necessary for every 60P in a standard dvd"

the clips play all perfectly fine on my computer in dvd players and editing
softwares I use.

Anybody suggest any other ideas on what to do to make a dvd video out of the clips captured by Power VCR II.. Maybe some suggestions on other software to try.

Generally all I want to do is capture Video From Tv and VHS in dvd quality,
split the clips into seperate files then make a dvd complient video out of
the resulting clips with menus to access each clip seperately.