Here's a way to convert .m2v video stream files to .iso images. This is a pretty easy task, if you have the right app installed. The app that we use for this is called Burn (icon pictured above). It's free and if you click this hyperlink you'll be taken to a page to download it. Below we'll cover how to put your .m2v files into a Data .iso image and into a Video .iso image using Burn.
If you're researching this, hopefully you already know what these file types are, both the .m2v file and the .iso image, but I'll explain anyway in case you need a refresher. .m2v files are video streaming files. .m2v files are elementary streams, meaning that they only contain one mpeg-2 encoded video stream and have no audio associated with them. If you need your video files to have audio, then you'll have to mux them with the audio you need into a transport stream or a program stream.
Now let's talk about what an .iso image is. "An ISO image is an archive file of an optical disc, a type of disk image composed of the data contents of every written sector of an optical disc, including the optical disc file system. ISO image files usually have a file extension of .iso." (wikipedia). If you go to wikipedia link, you can read a lot more about what a .iso image is, but for our sake it's safe to stop there with the acknowledgement that an .iso image isn't a video file, but rather a disc image that can have video streaming files on it (or lots of other information).
Open Burn, and select Data.
If you want your .iso image to open on both Mac and Windows, select "Mac + PC."
Then click the "+" button.
In the screen that appears, locate your .m2v file and add it. Then go to File and select to Save Image.
This will save your .m2v in an .iso image.
If you were looking to make a DVD-Video .iso image, as opposed to a Data .iso image, then follow the next set of instructions. Before we begin though, know that you can't use an .m2v file in a DVD-Video .iso image in Burn, so you'll have to convert your .m2v to a compatible file format like .mpg. You can do this in Burn or you can do this in the encoder of your choice.
Now open Burn and click Video instead of Data.
In Burn, on the Video screen, select to make a DVD-Video (it should say VCD by default when you open the application).
Then click the "+" button.
In the screen that appears, locate your .m2v or .mpg file and add it. If you selected a .m2v file, a window will pop up telling you that you selected an incompatible file, and it'll ask you to convert it mpg. Click Convert.
Then go to File and select to Save Image. This will save your .mpg in a DVD-video .iso image.
Hope you found this helpful.