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Although TMPGenc is without doubt one of the best encoders there is, it does NOT produce 100% complient MPEG streams. If your player is tolerant you will be ok but you will have particular problems with the cheap VCD players which do require 100% complience. Use BBMpeg if you want a free encoder or one of the other quality encoders like CCE or Mainconcept if you want to buy an encoder.
My old DVD player also wouldn't play TMPGenc MPEG2s properly either. It would produce a horizontal line, above the line would be correct, below would judder.
I had a thread going at
http://www.videohelp.com/forum/viewtopic.php?p=869947
but never really got to the bottom of the fault.
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