Just to check, go into your preferences, and check the setting: "Use File System instead of Internal I/O"

I had a problem where all the DVDs I was backing up since that update, were getting gaps in them and not playing all the way through (seemed to burn fine but when playing it would hit a gap like I mentioned above and stopped playing).

Not exactly like the problem you are having, but I wouldnt be surprised if the new UDF parser/reader they switched to is causing more problems then just what I was having.

If changing this works, good deal, if not, just keep posting here and I'm sure someone else can help resolve it eventually.

EDIT: Hmmmm...you tried burning with nero too and it didnt work? Not sure what to tell ya, the problem I was having (before I got it fixed), I was able to burn fine w/ Nero.