actually what I do... is I use Vegas 6 and DVDShrink...
I copy the DVD image to my drive... using DVD Shrink.... (but every chapter separate)
then, I drag my .vob movie into Vegas (it reads .vobs pretty much) and I crop it to be anamophic.... and stich together each chapter
after that... I simply render it to MPEG2 24p Widescreen and there you go!