Pinnacle will give the option to encode to DVD standard ("Make disc" tab).
The resulting for is a VIDEO_TS file. Using Nero accept the options to burn a DVD and open the VIDEO_TS folder. Open the file produced by Pinnacle and drag all the files (most are VOB files) into Nero. The message says that the "Anchor file" is not valid - simply okay that. Then burn.
After some initial problems (now sorted) I would recommend the NEC 1300A (dual format) from bigpockets.co.uk (£199).
As for PS2 - don't know as I've never tried it ... seem to remember someone said that they only read commercial DVD's but I'm sure someone will be able to answer that bit