Where is the MPEG-2 selection in the summary tab To Target Setting

[RL]

Where is the quick preset for the file encoding for MPEG-2 in the drop down To Target Format menu?

Which do I use if I want to do a file MPEG-2 encode?

[Case]

"DVD mpeg2enc" or "DVD ffmpeg".
Uncheck "Author as" in the Options tab if you do not want ffmpegX to create a VIDEO_TS folder from the .mpg output.

[RL]

The Target DVD MPEG-2 selections in the summary target to menu create MPEG-2 videos without sound. These selections create about 4 different files including a .wav file that plays the audio in iTunes.

When I get the Summary Target to display MPEG-2 by selecting the video tab MPG-2 and not the summary target DVD selections I get one file that plays sound and video.

So there is something about setting MPEG-2 encoding using the video tab versus the target tab with DVD MPEG-2 options.

I could not make any MPEG-2 conversions with sound and video using the DVD MPEG-2 selections.

[Case]

The presets set the settings in the various tabs. That's all they do. Choosing a preset is the same as making all these settings manually. The presets are just a quick way to set a bunch of settings with one mouse movement. If you want to tweak the settings by making further adjustments, then you can do so. E.g. selecting a different audio codec.

I'm sorry to hear you could not resolve the audio problem. For some types of conversion, such as yours, ffmpegX will convert the video first into an .m2v file, then the audio into a .wav file (for QuickTime source files), then convert that .wav to .ac3 or .mp2, then mux the video and audio together into an .mpg file. The .mpg file should have video and audio.
You could check this by dropping the output .mpg file back onto ffmpegX, then use the [Play] button. This action would start mplayer playing the file. (Use the 'q' or 'Esc' key to stop the player without crashing.)