What happens if you select the option to burn your DVD to Folder rather than directly to a disc? (This will tell us if the problem is with the transcoding or if the problem is merely with the way the program interfaces with your DVD burner.)
I have managed to burn the DVD to a folder - so would appear to be an issue with the DVD burner interface. I have checked that I can burn DVD's from other applications: Windows Media Player and AVS4UDiscCreator.
If you can burn your DVD files to a folder on your hard drive, the simplest solution is to just use a program like ImgBurn (a free download) to burn the VIDEO_TS folder to a disc. Then you're done!
There are a number of advantages to burning to a folder on your hard drive rather than directly to a disc (and doesn't take any more time). In fact, even though I am able to burn directly to a DVD disc, I prefer to burn the files to my hard drive and then use ImgBurn to burn the DVD folder to a disc. Not only is this a more trouble-free way to do it, it makes burning off several copies of the same DVD a cinch!
Thanks for the advice - I will try that route.