Thank you everyone for your assistance on this.
I've tried everything with changing the output/temp directories, etc.
What EXACTLY should it say for "Target"? For me, it has the little folder icon, followed by D:\ (which is my burner drive letter).
When I click 'Start', I get the following message with 'The Little Mermaid' in my source drive (which is E):
As for the message when trying to use the VSO burner, this is what I get:
I've searched this forum for that error and apparently it's a very rare problem and I tried all of the suggestions that included uninstalling, regcleaning, defragging, reinstalling, rebooting, spinning on your heard, etc, and I still continue to get that message if I try to use the VSO Burner.