Flossy...I use the same version of Nero as u, and was able to successfully burn a dvd that had been ripped by dvd decryptor and shrunk by DVD2One. I remember tho that when I tried to do the wizard manually, it just would not allow me to burn the files I had chosen. But when I used the wizard and chose dvd-video as u did, it burned and ran perfectly on my sony standalone. I used a Maxell dvd+rw disk. Lastly, tho this worked on my sony player...it would NOT play on the ps2. I dunno if this is becuz I used an RW disc or what. My 2 cents.
VIDEO_TS inside a VIDEO_TS doesnt actually make any sense. There can be no possible advantages to it, and the DVD player may be confused by that. DVD Standalones will automatically look for the DVD file folder (VIDEO_TS), unless of course it is an image. When it does this it first looks for the file names VIDEO_TS.IFO for DVD navigation. Why add to the complexity of this process by trying to confuse (probably the older) the DVD