How many and what type of Sources do you have for the merge? What is the output size (DVD5,DVD9 etc.)? Did you remove any of the DVD disc Sources during the
process (that will kill it). You should never get the message you posted if writing to a folder.
Then it should have worked. What version number are you using? And what about the error message when writing to a HDD folder, did it say the same thing during the merge or only when you tried to burn it later?
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