I have version 6 of VMS. Unless something has changed the answer is no. Microsoft adds packets of information to the mpeg that makes it impossible to read - unless you're Bill Gates.
Don't use DVR-MS.
If you must use it, you can pay a company 40-50 bucks for a conversion program that strips out the offending packets, or you can use some shareware stuff. I have used the shareware program - (can't even remember the name - been a while - just do a google search). It worked mediocre at best and I think it is a pain. I have "the Media Center - woo hoo" type computer as well. I ran out and picked up Nero (for the same price as the conversion program - but Nero has some useful tools) to do the fast and dirty TV work. It records to a clean mpeg format. Just be advised that editing mpeg can be a little tricky - sometimes you have to play around with it because of sync issues (of the video with the sound). To get good avi files (for much easier editing and better quality) you will need to capture your program off your sat/cable/vcr box using something like the canopus advc 55 or the 110 or the 300 through the firewire which converts the anolog signal into digital.
I know - you'll be scratching your head on this one - but that is how it is. (Unless they made some changes in version 7 or 8 - which I doubt - dvr-ms is a lame duck I think)
Thanks folks, all I want is to be able to easily and quickly take media centre recorded tv file (dvr-ms) and burn it to dvd w/out any fancy editing. Since I already own VMS I was hoping it could but does not seem so.
Will look into Nero and also something called VideoRedo.