Not sure about version 3, but I have used WinDVD Creator 2, which came bundled with a burner I once bought. I found it to be very easy to use, although the titling was a bit quirky. I still use some of the effects - such as the "Video Wall" effect and the "Raindrop" effect. Not sure if version 3 has increased user options, but version 2 only gave limited control of output , with the emphasis very definitely on ease of use. It includes a Smart Render feature, and encoding DV avi to mpeg-2 is very quick. The user interface is particularly clean looking.
By contrast, Video Studio has more features, but is not quite so easy to use. Personally, I believe VS offers slightly better quality encoding to mpeg-2.
I once did some Smart Render tests on DV avi video captured from my camcorder. After 10 generations using Creator 2, there was a noticeable drop off in the picture quality. Running the same test with VS8, there was no significant loss of quality.