Here's a software called AVS Video Tools that converts MKV to many different formats such as AVI, DVD, MPEG4, OMG, etc.
I have a 30-minute MKV file that AVI2DVD could not read (I don't know why). But this AVS Video Tools just converted my MKV file to high-quality DVD without any trouble. The software automatically creates Audio_ts and Video_ts folders and can burn them directly onto a DVD after the conversion completes.
It took aprroximately 50 minutes for AVS Video Tools to convert my 30-minute MKV file to a complete DVD, ready to be burnt.
The software is not free. The cost is $39.99. However, you can download their free trial version to see if you like it. The trial version will convert your MKV file completely, with the company's logo that appears periodically in the center of the screen.
Besides the conversion capability, the software also copies DVD, edits video and captures video signals from your camcorders and VCRs.
For more information, go to:
http://www.soft29.com/dvd_video/video_converter/avs_video_tools.html
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