Windows Media Center edition records video in MPEG2 wrapped in a format called DVR-MS. Basically a plain MPEG2-file with some metadata. I can’t understand why Microsoft has not included a tool to automatically recompress DVR-MS to Windows Media Video 9 in Media Center Edition.
But, as always – if it is something that people want, people make it.
Just a quick list of alternatives:
AutoDVRConvert
DVR-2-WMV
Tsunami MPEG Xpress
dCut
PowerCompress
GraphRenderer
CyberLink PowerDirector
PQ DVD to iPod Video Converter (Can convert DVR-MS according to spec, but look in the comments here in this post, seems like a user have had problems and that the DVR-MS conversion doesn’t work)
VideoReDo
DVR-MS Toolbox
I know that I have forgotten many tools that does this kind of stuff. In addition to the fact that I am going to expand this list please feel free to comment and suggest other tools.
eirikso 
Videoredo is the best.
Thanks. I have added it to the list.
http://www.microsoft.com/windowsxp/mediacenter/using/DVD/burntvtodvd.mspx
Thanks for the tips
[…] To make it easier for Dagbladet’s readers I will give you a quick roundup of some media center links and advice: – The complete list of software solutions – A quick roundup of some of the systems I have tried – An update with links to other articles as well – Converting DVR-MS files from your media center – Placeshifting, your media everywhere! – Remote control your music collection in MCE – Everything in the HTPC category […]
PQDVD doesn’t convert dvr files. I purchased the product and it doesn’t
work.
Thank you for noting. I have updated my post to reflect this.