I know that you need to use 3 different softwares to create:
1. avi->mpeg2 encoder
2. A software that creates TS-files
3. Nero
Is there a software that combains all three operations???
You can try "The filmmachine" link
It does everything in one easy operation. You can even add subtitles. If you can't get hold of CCE, you can use the included HCencoder