Which is the easiest and cheapest program that will allow me to do the following:

Mandatory:
1) 3 buttons on the Main Menu, one for play the movie, one for scene selection, and one for bloopers.
2) Scene Selection submenu that will take me to various points and play the rest of the movie from that point.
3) Accept legal DVD mpeg files (from Premiere 6.5).
4) Manual Chapter Point inserts (in order to do the scene selection).

Like To Have:
1) Dolby audio encoding (or something to compress PCM - I'm worried that mpeg 1 layer 2 audio may not play on older DVD sets). (Is Dolby called AC-3 sound?)
2) Customizable Menus and buttons.
3) DV avi to mpeg conversion (with full control of parameters).
3) Burn the DVD.

Pie in the Sky:
1) Motion Menus

MyDVD will not do it (will not allow manual Chapter Points). DVDit does this but doesn't seem to want to burn any DVDs.

In order to have the scene selections, I believe I must build the movie as one file and then insert Chapter Points, is this correct? (If I try to do it with multiple files and link the files, I get a brief black scene between clips).

Many thanks for any input!