Your MPEG2 files must be DVD compliant. audio at 48000hz and a compatable bitrate.
TMPPEnc does have MPEG2 compliant templates which make the process easy.
Once the files are encoded you need an authoring program. Basically this allows you to make a menu to select the video item to play but more importantly it will create the neccessary files for you. It will convert the mpeg files to VOBs and will create the IFO and BUP files for you. The new TMPENC will do this for you you or purchase ULEAD DVD 2 which is not too expensive or you can buy a OEM version of Sonic MYDVD from SVP for £19 and that is pretty handy too. Of course if you want the full bells and whistles and AC3 audio then you need to look at DVD Workshop, DVD Architect or some of the upper price region versions from Sonic.
All of the above program will burnt the files to a DVD for you as well or you can use NERO.