I still have iLife 06 as well, so I have iMovie on CD.

The software update for iDVD fixed the program, but it's still not usable for what I need to do.

It won't accept MPEG-2 source material, even though that's what will be the final format of the video. Ideally it would take it in and allow you to author without re-encoding.

It can take in DV and lesser formats, such as the AVIs I've created from the original MPEG-2 captures. I have concerns about its transcoding and the ability to fit the desired content onto each DVD.

As a comparison, Toast can also transcode but I've been using it, as mentioned, just to author, whereby I can fit 4 episodes of 50 minutes each on a single disc. When it does the transcode from AVI to MPEG-2/DVD I can barely fit any content on the disc (less than 2 hours) and the video looks terrible (super blocky and not terribly smooth frame rate).

I've found my solution, but I'm going to play with some intermediary formats to verify the best I can get from iDVD. I'd like to use its menus in the future...