I just downloaded the latest updated version posted at
Nero's website - v7.0.5.4 - and it seems to fix the problem. I only tried it going from Start, Nero, Audio, Nero Burning ROM. When I set the "No pause between tracks", it correctly set the seconds to '0' this time except for the first track. The older version did not do this. After I burned a test CD, it came out without the 2-second gap.