Gilford, if you don't click "New DVD" before dragging the VIDEO_TS folder into the toast window, you end up with a dvd named "VIDEO_TS" with all the ifo and vob files at the root level of the DVD.
The VIDEO_TS folder must be a subfolder of the DVD.
But you figured it out, and that is all that matters.
I see someone else did the Data DVD mistake. I've done that one before too. Plays fine on the Mac, but gurfs on set-tops.