VideoRedo is an excellent editor for this purpose for mpeg2 format recordings (.ts .vob .mpg). You can easily remove ads with frame by frame accuracy - or i believe it will do it automatically.
Avidemux is free and i think it handles mpeg2 but i haven't used it myself with this type of file. And it's not quite so easy to use as videoredo.

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have already this month spent £150 on dvds
