Ok I managed to get it working. Since I do not have a BD drive I had to get the movie from 'elsewhere'. My first video file had messed up FPS setting which is why it was failing with tsmuxer. I found another one which reported it correctly as 23.976fps.
Once question, when I view the codec info in VLC, is it supposed to report the track as DTS-HD MA? It simply says DTS audio on mine. I didn't check box marked 'downconvert to DTS'.