Is it possible to create an MPG using TMPGEnc? I can't see any option other than to create an m2v and a wav, which I then have to turn into an MPG anyway, so it'd be nice to remove a couple of days from the process.
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Yes, but you must choose to use mpeg1 layer 2 audio and not wav/pcm. If you use wizard it should be in the first steps.
Then again - If you're on to authoring a DVD, most authoring apps should accept (in fact prefer!) elementary streams...
Under "Stream Type" select "System (Video+Audio)"