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Editing actual VOB files is tedious - they need to be converted to a editable, lossless format and then converted back into DVD compliant MPEG2 (which I do not consider a proper editable source format) to be contained back into a VOB file.
With what you currently have - capture your S-VHS source as a lossless AVI and edit to your hearts content. Then I would use NeroVision4 to create the video - NeroVision4 does as good a job as any in creating DVDs and transcoding to MPEG2 DVD compliant VOB files.
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Dave.
Go where there is no path and leave a trail.
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