kmttg not decrypting as expected?

I recently downloaded kmttg ver. n to update from ver. i
Now when I choose to decrypt, they don't end up in the expected .mpg format but instead are all left as .ts files in the destination folder.

Then ver. o just got release and I updated to that and tried doing the same but still decryption result in .ts files instead of the expected .mpg format?!?

All previous versions from 'i' and before experiences were working just fine (ie. to say I am not a complete newbie ;) [TiVoLibre is checked off... ie. on]

Any idea what's going on?