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Yes, it is the Ligos engine but it's now a new beast. It now does interlace properly (much nicer quality) and both VBR and CBR.
The quality is good enough so that during some tests I ran during the MSPro 6.5 beta it actually delivered better Q scores than did TMPGEnc 12a in MPEG-2. Q = compression ratio. Lower is better and the DVD Plugin's Q was often 20-30% lower than TMPGEnc's.
The only weakness with the new engine is that Ulead chose to set the max bitrate for MPEG-1 at 2000 kbps. This is silly, but they did it anyhow. MPEG-2 still has the 14,648 kbps max it had before.
At any rate myself and others have hit up Ulead's product manager about this and it may well be changed judging from all the heat they took
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