Follow this guide.. http://www.digitalfaq.com/forum/show...peg-2-495.html
The MPEG-2 file must be encoded to a DVD-Video spec resolution. I suggest 352x480, and the guide gives you the correct resize based on that dimension.
The resize for custom size needs to result in a 4:3 file on a 640x480. So you'd be looking at about 12 from each side. and then 9 from top and bottom. But it has to be in a 2x2 size. So 628x470 maybe.
Does that restore enough? Probably a good push at least.
The conversion not having sound means your audio codec is not being found. Is it AC3?
TMPGEnc needs to be set up correctly. Did you read the guides