When you re-render mpeg and add some global effects, you will be recoding all of the the video each time, even at the highest bitrates, so it doesn't lend itself to multi-pass rendering. FWIW, DV-AVI would be a better standard to use if you are going to go multi generation as it only compresses each individuall frame, and not groups of frames. (much bigger files, though) (sound of stable door being bolted)
As for adding further degradation when making a disc, it depends how many of your mpeg-2s you are trying to put onto a DVD. If it's less than around 67 mins (depends on standard and sound settings) then the files should "smartrender" and there will only be a minor quality loss around edit points. You should be able to spot smart rendering because it will be much quicker than re-rendering.
So, I'm afraid I think you are stuck 
If you even have the first generation, try going back and adding all the rest of your modifications in one go - then you will only have one re-render.