I edited a project approx 12min long and wanted to create a DVD. Bare in mind I'm new to all of this. What format should I save the Type in? I saved it in MainConcept MPEG-2 (thinking that DVDs are rendured in MPEG-2) is this correct? The template was DVD NTSC...is this correct? Obviously not b/c it didn;'t play on my DVD player, not even the one on my computer. However, it did play on my PS3 but the quality was terrible. I also noticed that on the PS3 it recognized the disc as an AVC disk or format. Does this mean anything to you.
Any suggestions as to what the proper settings should be so I can play this on a regluar DVD player. In the event I want to share the disk I could only share it with people who have a PS3. Is there also a way to set this to play on a DVD player without loosing so much quality?

Creating a DVD for playback on a DVD player requires a few steps.
Edit the video and render it out as a DVD compliant mpeg2 file.Sounds like you did this.Then you must " author " the DVD.There are a number of ways to do this.One example would be by using DVD Architect to do the authoring( create menus and how they respond).I would normally author it and prepare it only, which creates the video TS folder and files.Then burn with Nero.
It sounds like your having a problem in the authoring stage.

There are many variations of MPEG2, and possibly you were in one not for DVD. Or, as Jack suggested, didn't author a DVD outside of Vegas in DVD Architect and created a DVD-Data instead of DVD-Video disk.

I highly recommend reading Edward Troxel's newsletters (http://www.jetdv.com), Volume 1 issues 7 and 8 address the rudiments of DVD creation, but you'll want to read all of them when you have a chance. Those early issues deal with older versions of the software, but still apply to current versions - with the new stuff you get more choices, esp. in DVDA.