Binky13: From the DVD VIDEO_TS folder I use VOBEdit to zip them all together into one big mpg file and then use TMPEnc to convert to avi for editing. As no software I can find ever gets me all the results I want I tend to use little snippets here and there. Yes, this hogs computer space but hey- I'm a hog!
coconuts86: Thanks for the great comments! Whenever Ver. 2.0 comes out I will be torn about the Alfred stuff. I could never use it all, but I will sit back, rewatch the original and try to view it in a different light. I guess that kind of goes for everything you mentioned really, but then again I usually end up going over things until my head explodes.

And where would *that* get me?
Also, about which software it depends on how elaborate of a DVD you want. There's lots of options. The software I used for this edit was:
-DVD Decryptor
-VOBEdit
-TMGEnc
-Sony Screenblast Movie Studio
-CoolEdit 2000 (audio)
-DVD Lab Pro
-Photoshop
darksir: I didn't make a label myself, but I too am curious and would like to see if anyone else has!
Phlibbit: I do all my DVD cover creation and printing in good ole Photoshop, but I'm sure there's other alternatives out there.
MagnoliaFan: LOL- I plan on doing at least a 'gag reel' along those lines. Wait a sec- 'gag' reel?!?!? Ewww.... Kidding aside, have you had a chance to check out the edit yet?