![Image](http://i.imgur.com/DFHMp.jpg)
I also have had problems muxing these streams with MKVMerge (streams extracted from tsMuxer and eac3to). I get similar macroblocking errors, but much less severe. MakeMKV is definitely the worst.
I did notice that MakeMKV lists the framrate on these streams as 120000/4004, whereas tsmuxer and eac3to listed them as 30000/1001.
Anyway, I can't find any tool capable of processing these 480i AVC streams. I thought maybe MakeMKV could work on it and be the first.