Thanks for your reply.
After making MPEG-2 files from several different DVDs with Cinematize 2 Pro, I realize there was something wrong with the first DVD I used. Only files from that DVD made Toast 7 reencode. So now everything works fine. And I was not exporting any menus.
Capty MPEG Edit EX seemed exactly like what I was looking for to use before authoring in Toast. However, since I'm using standard broadcast material, my video frame rate is 29.97 for NTSC and 25 for PAL. I assume I can't use the software then?
Any other suggestions for joining MPEG-2 video? I tried combining m2v files in Quicktime Pro but the resulting file did not play properly (video stopped each time a new clip would begin). And I don't want to use Cinematize 2 Pro's "export to QuickTime", as I want to keep the original quality by not reencoding. If nothing is avalable on the MAc side, I do have a PC as well.