Hey... None of this above seems to pertain to your situation
So you've got this MPG file that's 700whatever MB's. Chances are very good it's a VCD. This is something that goes on a normal CD and should play on your DVD player if you burn it with the correct settings in your burning software. It can be authored to a DVD, but not easily. Chances are you'll need to resample the audio and learn a bit about authoring. The best place to go for this is VideoHelp.com's guides section and look for"(S)VCD to DVDR without reencoding" guides. But it's probably just easier to put it on a CD.
A DVD will usually come as an ISO file or a set of files with VOB, IFO, and BUP extensions, and filenames like VTS_01_1.VOB, VTS_01_2.VOB, so forth and so on. These are what you would burn with the "DVD VIDEO_TS" option.
Best of luck, I hope that explains some things.