Please move to editing if required.

I've been capturing music vids for the kids using mz lieton lvw5006.
I am looking for the best software-suite to edit-cut and create a dvd with a menu entry for each video.
Here are some of the issues:
1. I used to used mpeg vcr with the mpeg2 files captured with mz adstech box but now I have to read each vob file separately which is a bummer.
2. TMPGEnc XPress or TMPGEnc DVDauthor do not recognize the pcm audio.
3. dvdshrink sazs there is an invalid navigation structure.

Any solutions-workarounds would be welcome.

thanks
8)