[reboot]

Get virtualdub.
Open the avi.
Select Audio, wave audio.
Select Audio, Direct stream.
Select File, save wav
Save the .wav file somewhere.
Encode your video normally.
Open tmpgenc, cancel the wizard.
Beside Audio source, click Browse. Find your .wav
Select ES Audio Only.
Click Setting, Audio tab, make sure it's Mpeg 1 audio layer II, 48000hz, bitrate between 192 and 384 (lower will produce a smaller file).
Click OK.
Click Start.
This will produce the proper audio file, remember where you saved it!
Load the video.mpg and audio.mp2 into your authoring program.