What I had been doing in the past is extracting the .ty with tytool, then processing it to a .m2v and .m2a. Make sure you have "Make .TXT Files" selected under the options menu. Then using
DVD2AVI I "index" the m2v into a d2v. This is done by using the "Save Project" on the file menu. I then drag and drop the d2v and m2a into TMPGEnc. Then in the source selection you can set audio offset, this is where you go back to the TXT file that tytool created when processing the file. At the bottom you see an offset, ie -13ms. You set this in the source selection. This is more of a round about way, but it gets the audio in sync. Then there are many ways you can process your video. I actually have been stretching it from it's native 480x480 to 640x480 Divx files making sure to somehow deinterlace them.
I got this method from
here. But now there are many other ways, and tools. I have only tried TyStudio once, but it worked great for me. There are also a bunch of tools on
www.vcdhelp.com