My suspicion is that AoA DVD cReator does not support 'B Frames'. Perhaps there is or will be an update that does...
In my effort to always upgrade the size/quality ratio of these downloads, I have opted to use B frames in LLVJ-17 which are 'key frames' that predict motion change both forwards and backwards (bi-directional). This means more load on the processor and certain older hardware and/or software packages will not support them.
A suggestion is to export the video from QuickTime Player Pro or other free video format converter like MPEG StreamClip to a video stream that does not use B frames and then try AoA DVD again. Check the Video FAQ