To add to the confusion here is the information about the source DVD.

Summary for drive E: (AnyDVD 6.0.3.1)
Drive (Hardware) Region: 2

Media is a Data DVD.
Booktype: dvd-rom (version 1), Layers: 1
Total size: 1488864 sectors (2907 MBytes)

Video DVD (or CD) label: TOP 40 1965 1966
Media is not CSS protected.
Video Standard: PAL
Media is locked to region(s): 1 2 3 4 5 6!

RCE protection not found.
DVD structure appears to be correct.
Structural copy protection not found.
Autorun not found on Video DVD.
Bad sector protection not found.
Emulating RPC-2 drive with region 1!

A straight copy using DVD Shrink in conjuction with Nero creates no problems.
Lifting individual titles, running them through Mpeg Video Wizard and importing them into either Ulead Workshop 2 or Ulead Disc Creator 3 causes colossal problems. Why?????