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Creating 2 Title, Menus
first extract any clips from the video.mpg source file like you did for the 1 Title scenario.
make-dynamic-dvd -i inputDir -d inputDir2
will process both sources and generate the final dvd.iso image in inputDir2. If you do not have the correct -loop.mpg files created, it will abort and give you an idea of what you need.
You probably want to look into using the options to specify the title to display instead of Title 1 and Title 2.