Honestly, I haven't found a great reason to use Compressor for MPEG2 exports. It's just more trouble than it's worth. But here you go:
With your sequence open, go to
File > Export > Using Compressor? When Compressor opens there will be a
Batch window open. Click the pop-up arrow, go to a "DVD Best Quality" option, and select "MPEG2"? It doesn't really matter which "DVD Quality" menu we pick since we're going to customize it anyway.
Okay, there should be "1 entry" in the batch window now. Double-click it. A preview window and an inspector window will show up. Look at the Inspector window. Make sure everything matches your sequence (frame rate, apect ratio, etc.) in the
Video Format tab. Go to the
Quality tab, set it to
Two pass VBR best and slide those quality sliders all the way up.
Go back to the batch window and to the same DVD Best Quality whatever. Select the AIFF option this time. This exports your audio.
Run the Compressor batch. When it's done, you'll have an AIFF audio file and a M2V video file. They should have the same first name (e.g. movie.m2v and movie.aiff)? If they don't, rename them to have the same name yet different extensions. Open up
MPEG Streamclip (if you don't have it, it's free) and load the M2V file. Go to
File > Convert to MPEG with MP2 Audio? It will use your audio file provided it's in the same folder with the same first name. That's it.
As a sidenote, yes, Compressor provides you with a "muxed" MPEG2 option, which is what we're doing with MPEG Streamclip. Problem is, that gives you a MTS stream..which isn't what you want. Older versions of Compressor used to do normal muxed MPEG files.?.I dunno what they changed in the last few upgrades =\