Adding a Watermark to a VOB

[Shaban]

Hello all,

I am trying to add a watermark to my newly created DVD.

I understand I may have to demux the VOB files to M2v and Ac3 files, I can do that with vobrator.

VirtualDub can add a logo, but can only save in AVI format.

Is there a way to save it back in M2v format?

or should I save it as AVI (what are the settings for the bitrate?)

Or should I use a different method.....

Thank you in Advance.