The simplest thing would be to rip/copy the VIDEO_TS folder to the hard drive then load up TMPG DVD Author and import the VIDEO_TS folder, it will then bring up a list of what you want to import
It will import based on the track/chapter structure of the original DVD, then you can just add your own chapters or menu and have it create the new VIDEO_TS folder which you would then burn
That removes the entire step of ripping into VOB's and/or changing to MPGs. Unless you are needing to edit the VOB's you should not need the step of turning them into MPG's to begin with
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