I have finally been able to be rid of the jerky video from dvd's that use tivo source files.

tytool settings
MUX --> VCD/SVCD
AUDIO --> Patch Audio Holes and Transcode #8
File --> Multiplex Mode

download the clip with the above settings. the mpg will need to have the Quick Stream Fix run on it. use these settings in VRD

Resync - Remove Audio Frames
Convert All I-Frames to GOP's
Output PTS With Each Video Frame
Output PS Pack Header With All Packets
Output Packet Length 2082 - DVD

run Quick Stream Fix on the clip as an mpg (do not edit) and set the Max GOP Length to 18

open the new mpg file and edit, output to mpv and ac3 or mpa

insert these files into DVDLabPro, and create the DVD.

the files will be marginally larger than he original tivo download, but the results are very good, with no jerkiness in high action or quick panning scenes.

good luck