Well, I downloaded the trial version of dvd-lab. It has the capability of joining the .VOBs before you author the movie.

This feature was not working. Then I renamed the chapters I had to the standard VTS_01_1.vob, VTS_01_2.vob, etc.

Then it worked. I was able to all the VOBs together and then author the movie.

If anyone else has any ideas, please followup.

Thanks