I use ImgBurn for most of my video burning these days. Use it in Build mode with the files in your Video_TS folder and have your output go to Device (your burner). This will burn straight to your blank dvd and not create a separate ISO on your hard drive.
I actually use a shell extension plus ImgBurn, so I just right click on the Video_TS folder and I get an option to burn with ImgBurn in the drop down menu. If you'd like to use this shell extension, it can be found at the bottom of this page: http://www.svcd2dvd.com/
Oops, nearly forgot to mention that you'll also need Net 2.0 to use that shell extension, but you can download that from Microsoft. All of this software is free by the way.