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the easiest way to do this, and trust me its the easiest way =D is get imgburn and goto Mode>build & drag all the files is the video_ts folder and click build. Builds an image in less than a minute for me for a 4.37gb folder . So this way it creates it to a .iso format so then right after you can just burn it.
although i'm really fond of imgburn, it's definately faster and more straightforward if you just use nero. new dvd, drag it in, burn. done.
Nero is very flexibility in term of burning stuff whether it's a img, vob, video_ts, etc.
Open Nero Burning ROM >> Choose DVD on the drop down underneath where it says new compilation >> Choose DVD Video on the picture menu under that >> Click the New button on the right hand side.
Navigate to the folder containing your .ifo, .vob and .bup files using the right hand panel >> Highlight them all >> Drag and drop directly onto the red VIDEO_TS folder in the left hand panel.
Make sure you highlight and drap and drop all of the files into that red folder, double click the folder to check that they're all there.
Click the burn icon in the menu bar at the top >> Click the burn button on the new dialogue box that pops up.
That's it.