The are three basic varieties of MPEG-2 video, 2 of them do include audio:
There's the video only type (.m2v) usually called an elementary stream. These are usually used in DVD creation, but the audio file is initially created separately and then multiplexed with the video during the DVD "build" process. The result is an MPEG-2 Transport Stream that is specifically formatted for DVD playback as .VOB files. That's why when you look at the contents on a finalized DVD the files are all in a VIDEO_TS folder. The TS stands for Transport Stream.
There are other types of MPEG-2 Transport Streams (with multiplexed audio) and there are MPEG-2 Program Streams (also with multiplexed audio). The file extension for the two types with multiplexed audio varies, but is usually .mpg, .mpeg, .mts or .m2t
MPEG-2 Program Stream files are often used for server based automated broadcast playback while MPEG-2 Transport Streams are typically used for sending video over IP.
What's confusing me is that the specs you provided call for MPEG-2 audio. Typically both transport and program streams have multiplexed MPEG-1 audio.
Can you have them verify the specs again?
Anyway, as to your initial question, I agree with KEN; MPEG Streamclip is a great app for conversion, but to create MPEG-2 files, you'll need the QuickTime MPEG-2 Playback Component from Apple. If you have the legacy version of FCP instyalled on your system, you should alredy have that component installed.
You can also use Compressor to create all three MPEG-2 file types ... and possibly QuickTime Pro 7.
-DH