Thanks for trying Podner.
Unfortunately in your case, Podner will not work directly with VIDEO_TS or VOB file formats. It's designed to process file formats that QuickTime understands, such as those encoded in MPEG-4, the Sorenson family of codecs, CinePak, and others. You can even use AVI and DivX files, if you have the right third-party QuickTime components installed.
To prepare video directly from DVD you could use a tool such as
http://www.versiontracker.com to locate a good general-purpose video encoding utility.