Camcorder DV-AVI to MPEG2 for WDTV Live - What software

[piperpilot12w]

I would like to transfer my camcorder video DV-AVI and convert it to MPEG2 to keep on a hard drive and play on an HDTV via WDTV Live. I have no interest in making DVD's, just play the MPEG2 from a hard drive. I would like to maintain the best quality I can from the DV-AVI.

I currently have a Mac Pro but I'm going to sell it and build a PC myself. I was doing some work with iMovie HD in the Mac and couldn't get past a transition/audio bug that couldn't be solved. I've decided to go back to PC. Tired of the limited choices/high price of the Mac in some of the things I want to do with it.

Would like some suggestions on software to do what I want. Simple edits with transitions and a title in the best quality encoding I can achieve.
I've seen Sony Vegas and Adobe Premiere Elements mentioned, are those good options or are they geared to making DVD's?

[Soopafresh]

Vegas Movie Studio Platinum will work well. It's only $100. No need to create DVDs, just render to plain old MPEG2 MPG files and save to a USB Thumb Drive

[piperpilot12w]

Thanks for the suggestion