Meridian: TMPGEnc, even when the trial has ran out, still encodes MPEG-1, but not MPEG-2. So, I assume your interest is in the MPEG-2 encoding? AFAIK, there aren't any (at least, not worth really mentioning) MPEG-2 encoders available for free, because of the MPEG-2 technology licensing (even freeware developers need to pay for patent holders..).
But seriously, $48 for full version of TMPGEnc isn't really much..
thanks dRD, Well $48 is kinda to much when ya can get a job for another year :( or I would. but I guess I will try to figure out what to do :) thanks ;)