Issues with SpruceUp

Hello All.

Recently, I tried to author a 27 title DVD with Spruce. Spruce would author fine, until it reached a particular video file. After authoring this file into a VOB, the program would stall and give me a “Cannot read video file” error. The file appears to have been authored into a VOB properly.

What I observed:
It’s random files, but they either always work or don’t work.
It authors fine by itself.
Spruce dies after authoring the bad file.
Re-encoding the file sometimes makes it work.
GSpot shows it to be a properly encoded DVD compliant file.

My Process:
Rip the file from a commercial VCD, and remove the RIFF header.
Load into Virtualdub, make it look pretty, resize, cleanup.
Re-write as a HuffYUV .AVI. Size is now 480x576, PAL, 25fps.
Encode to MPEG2 with TMPGEnc, upsample audio and convert to MP2 (batch)
At this point, all videos have been converted under the same batch settings.
Load all into Spruce, author the DVD. Get error, stop.

System Used:
P4 3.2GHz
2GB PC3200
400GB HDD space
XP Pro SP1b

Any insight on to why this happens? I realize it’s probably just one of Spruce’s many quirks, but hopefully someone has run into this before and at least figured out what the problem is.