Ok, so did a little experimenting. Turns out that when the Filename and/or Title is past a certain amount of characters it creates the 0 byte file with no extension. I was trying, Pirates of the Caribbean: Curse of the Black Pearl, as both the filename and title. I changed it to just Pirates and bam works. Just thought you all should be aware of this bug.
Also another minor issue I'm having is with the Preview window. I get audio but no Video. I don't really want to guess and check with settings because I rarely use it anyway, again just thought you'd like to be aware of possible bug.
Another possible Bug: When you open one source within a folder with many sources and choose one, DVDfab will only show the path for that folder when trying to open another source. If you open another source in another folder you are able to expand and collapse the previous folder again. Hopefully that makes sense.