Some clever chap has already figured this out.
h**p://www.avsforum.com/avs-
vb/showthread.php?t=801226
Transcode Tutorial
1. Open VLC Media Player.
2. Choose File > Wizard.
3. Select Transcode Save to file and Click Next
4. Click Choose and then Click Browse to select Input File, Click OK then Click Next
4. Click Next to skip Video & Audio re-encode, not required here.
5. Set Output to Format - MPEG TS or (MPEG PS for AC3 Audio) and Click Next
6. Click Choose and Set Output Filename & Folder and click Save.
7. Click Finish to start Transcode, this should be quick.