System Requirements 
i recommend recommended, unless you want to wait a month until it finishes 

a Intel Pentium 4 @ 3.0ghz or higher (DualCore Recommended) 
a AMD Athlon 64 @ 3000+ or higher (DualCore Recommended) 
1GB RAM or more 
20GB+ in space 
Good Time 
a Movie with aspect ratio 16:9 with NO black bars only at the botton 

Tools: 
AviSynth > http://www.avisynth.org/  
MeGUI: http://www.x264.nl/  
DGIndex & dgdecode.dll > http://neuron2.net/dgmpgdec/dgmpgdec.html  
TIVTC > http://bengal.missouri.edu/~kes25c/TIVTCv1RC2.zip 

Step One: (DGindex) 
1. Open .ts in DGindex 
2. Set the right PIDs to Video and Audio 
3. Change iDCT to IEEE-1180 
4. Press the [F4] button 

Step Two: (AviSynth) 
1. make a .avs file with notepad 
2. put this in it and change path\to & file.d2v 

[-----------------------------------] 

# PLUGINS 
#LoadPlugin("C:\path\to\FDecimate.dll") 

# SOURCE 
MPEG2Source("file.d2v") 

# IVTC TIVTC 
tfm().tdecimate() 

# CROPPING & RESIZING 
# Note: if the source is 1280x1088 use the secound but if it isnt use the first one 
Spline36Resize(1280,720,0,0,1920,1080 
#Spline36Resize(1280,720,0,0,1280,1080 

# DENOISING: (if you got noise) 
denosing can realy degrade the details, grain is not exacly noise, its has been on film in since first cameras 

[-----------------------------------] 

Step Tree: (MeGUI) 
1. Load the .avs file into MeGUI 
2. You should get a preview right after loading 
3. Select x264: DXVA-HD-HQ encoder profile
4. Tools > BitRate Calulator > DVD-5(4GB) for a movie that is 1 hour & 40min or DVD-9 (8GB) for a movie that is 2 hours and 20min then apply 
5. Change Filetype to mkv & Enqueue 

Step Four: (MKVToolnix) 
1. Drag both the .mkv file & the .ac3 file into input files in mkvmerge GUI 
2. Click on the ac3 file & Make default track, Language (English), Trackname (Dolby Digital 5.1) 
3. Check if you got the delay in "Format specific options" same as that in the name of .ac3 file 
4. Start Muxing 
5. Play it :)