I started using Vegas for creating .mp4 versions, of these videos.
I figured it would make sense to use Vegas for the DVD creation.
Thus-far, I've only seen the ability to create .mp2 files or burn a physical DVD.
Is there a way to create the DVD folder, with Vegas?
The only, reasonable, option, that I've seen, is to burn a DVD and extract the files.
These days, Vegas Pro comes with DVD Architect included. The directory you are looking for is created by DVD Architect when it prepares the files needed to create and burn a DVD. Vegas creates various types of video and audio files that can be used directly for playing on a PC, uploading to Youtube, or by programs like DVD Architect which creates DVDs of various kinds. Vegas may, for example, place the video in an mpeg-2 file, and the audio in an AC3 file. DVD Architect then uses these two files to build a DVD. Part of that building process is creating the VIDEO_TS directory. The ability of Vegas to burn a DVD is probably a holdover from its earlier days, and is probably not used very much since it is a very limited function.