You can try re-encoding the movie to NTSC specifications. AVStoDVD can make use of DGPulldown, so that is the tool I would try if you want to use a free conversion program.
You can find AVStoDVD here: http://www.videohelp.com/tools/AVStoDVD
Go into AVStoDVD and click on Preferences, then click the Audio/Video tab. Make sure the output is set to NTSC. Put a check mark in the box to save Preferences as default. Now shut down the program and restart. The saved preference should be applied at this point.
Load the VTS_01_0.IFO file into AVStoDVD (click on the green + sign on the right side of the main window to add a file). Let the program index the movie. You'll get a box to select the audio stream. Make sure your audio stream has a check mark in the box next to it, then close the little window.
Now click on the icon with a movie reel in it (just under the green + mark). Click on the Video tab and make sure the encoder selected is HC and you are set to do two passes VBR. Output should be Full D1 720 x 480. Click on the Audio and make sure you are getting AC3 audio output. Click ok.
Now take note of where the output is going, change the title if you want, and look in the DVD Menu section if you want to make a menu. This process will not keep the original menus by the way. You can also change the size of the output if you want. Normally AVStoDVD compresses to fit a single layer dvd. You can also make double layer dvd size if you don't want compression...single layer is called DVD5, double is DVD9.
No promises that this will work, but worth a shot. A commercial product that some people use to convert PAL dvds to NTSC is ConvertXtoDVD...not something I use though.