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Freeware program to author DVD with menus: DVDAuthorGUI Download and install the software: 
DVDAuthorGUI
You must have video MPEG2 and audio AC3 files to author DVD. If you don't have it, then download and install free Oxelon Media Converter to convert any video files into M2V (MPEG2 Video Only) and AC3. Step 1. Launch DVDAuthorGUI. Choose DVD Format - NTSC or PAL. Step 2. Click "add title" to add the titles. MPEG video files with M1V, M2V, MPV, VOB, MPG, MPEG extensions are supported. You need MPEG2 video stream. 
Step 3. Select the first video file (for example, Introduction.M2V), and click Open. 
Step 4. Next, select the audio file associated with the selected video. AC3, MP2, MPA, M2A, DTS files are supported (for example, IntroductionAudio.AC3). Click Open. 
Step 5. After that, you can click "add title" again, and add new video/audio files (in this example, HomeVideo.M2V and HomeAudio.AC3 were added). Repeat this step to add as many titles as you want. Step 6. Now, you can add chapter points to the titles. Select the title and click "chapters". 
Step 7. You must enter the starting times of chapters, using the following format - Hour:Minutes:Seconds.00 For example, we added four chapter points here: 00:00:00.00 (start), 00:01:20.00 (1 minute and 20 seconds), 00:03:15.00 (3 minutes and 15 seconds), 00:04:40.00 (4 minutes and 40 seconds). 
Repeat these steps to add chapter points for each title. Step 8. Next, add menu to DVD. You can add ANIMATED or STATIC background. ANIMATED BACKGROUND First of all, in order to add animated menu, you must prepare M2V or MPV file with the background video. After that, click "Menus" -> "Add New titleset Menu". Select your M2V video file and click Open. Also, you can add the background audio in one of the following formats: AC3, MP2, MPA, M2A, DTS. Choose audio file or cancel. STATIC BACKGROUND Prepare one JPEG image. Required size is 720x480 or 720x576. After that, convert image into M2V still, click "Menus" -> "Create M2V Still". Select the image file and click Open. Enter filename of the new M2V file that will be created from your image, and click Save. Next, specify the amount of Frames Per Second (for example, 1 FPS is ok for NTSC, but you must set a higher value for PAL). Finally, click "Menus" -> "Add New titleset", select your new M2V file and click Open. You can also add the background audio file if you want. However, this is optional. So, choose audio file or click cancel. 
Step 9. Click "add button". Move the sliders to adjust Width and Height of the button. Drag the area of the button to set the position inside the window. You can add many buttons. All of them will appear in the list. You can select every button to set additional parameters. 
Step 10. Choose colors of each button. Set action associated with each button (jump to the specific title and chapter, resume, exit, jump to the specific menu). 
It is possible to make a button with image. Check the "advanced" option, and click "use bmp button" to select BMP image. Click the "Accept" button. Step 11. Next, click "nav cmds". It allows you to set action that is launched at the end of playback of each video title. For example, it is possible to switch to the menu ("call menu"), exit or jump to another title. Select each title, and set corresponding action from the drop-down menu. You can also set action that must be launched when dvd is started. Choose action for the "first play". 
Step 12. If you want to have ISO image of DVD, then click "File" -> "Create ISO after authoring". Step 13. Finally, click "author DVD". Choose folder path and enter folder name for DVD files. Step 14. Wait several minutes. Done! Step 15. Now you can burn the created files in the VIDEO_TS folder with any DVD burning software. Click here to read: How to burn VIDEO_TS folder to a watchable DVD.
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