Unfortunately what you're trying to do here is fundamentally wrong... You're creating ISO9660/Joliet file tree from the DVD-Video content. What are you going to do with it later? It would not play on stand-alone DVD players...
What you really need to do - create ISO9660/UDF bridge file system image. Take a look at DVDVideoBuildImageEx sample. It does EXACTLY what you want. It's pretty simple and well documented.
If you're submitting bugreport or just a problem we need complete debug log from you (take a look at StarBurn FAQ on how to generate it). It would save us both a lot of time
Thanks!