Two things to note. First of all MPEG2 isn't the ideal working format for sophisticated editing/transitions. You are better of working with a format such as DV avi that doesn't rely on temporal compression (in other words every frame of video is uniquely identified in avi) to allow for frame accurate cuts/transitions with minimal recompression at the transition point vs. mpeg2. Second, if you do insist on editing mpeg2, then no standalone DVD recorder with produce sophisticated transitions or even background audio dubbing. Your only choice is a desktop editing solution. For mpeg2, the application of choice appears to be Womble MPEG Wizard. If you choose to go the avi route your choices are more widespread from Adobe Premiere, Ulead MediaStudio Pro, and Sony Vegas to Microsoft MovieMaker 2 and everthing in between (Adobe Premiere Elements, Pinnacle Studio, Ulead Videomaker). Good luck.
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