AVI->MPG2 conversion problems

[Proch]

Hi. In an effort to take old Hi8 video and transfer it to DVD, I'm doing the following:

1) Hi8 Camcorder->Digital Camcorder->FireWire
2) Using Windows Movie Maker (XP) to capture to a big AVI (30GB)
3) Using TMPGEnc (2.58) to encode to 5250 bps VBR MPG2 (takes 10 hours)
4) Using TMPGEnc to cut MPG2 into logical tracks for the DVD

Somewhere along the process (I would guess in step 3) something goes wrong. I basically can't get through step 4 because there seems to be a problem with the MPG2 file. It appears that the time index during play is different from the time index during a seek operation (Pause, using the slider to jump to a particular frame, etc). This makes cutting the proper scenes impossible because when I pause the video, then use frame advance to go just one frame forward, it jumps by seconds. Does anyone know why this could be? How can I fix this? Where did it go wrong?

[Tommyknocker]

TMPGEnc can be a little buggy. I use Ulead Video Studio. Try its demo with step 4. Good luck!