Go to TMD and download their codec. It's just a (slightly) hacked version of Div3 lowmotion mpeg-4. I think the lowmotion mpeg-4 one in the K-lite pack will work for it too.
Think that the only think hacked about it is a different fourCC. As such changing the fourCC to mp43 or DIV3 should also work. Assuming that you have something installed to handle MS MPEG4 or DivX3.
I thought that was the case too, however...because their (TMD's) encodes are all half framerate, half audio sampling rate (14.985fps @ 24khz), playing with THEIR codec produces a less jerky output in WMP. Played in a proper player, such as WinDVD Platinum, or similar, the result is jerky and blurry and virtually unwatchable. Good for getting a sneak preview, but I wouldn't waste any time encoding to dvd, unless it was with the Half D1 KDVD template, and stuff about 8 movies onto one DVD. I have a screenshot in a post here somewhere, about setting up tmpgenc to encode them properly...