Many thanks to the codeguys. I hope other readers can benefit from my positive codeguys experience which I'll summarise here:

Product: Liteon LDW-851SX External USB2 DVD+/-R&RW Drive. With Official Liteon GS0H Firmware.
Problem: DVD Backup yielding jittery video, and unplayability on my portable Venturer 7" TFT DVD and Yamada Home DVD player. (I use DVD Shrink and Nero6 - but this is not a software problem).

In step the Codeguys. Using Code ported from the 812S Drive they created a hacked FW named GSC2. In addition to that, it's customisable using their tool omnipatcher (Refer to : http://codeguys.rpc1.org/patchers.html)

Result: Perfect burns, no frisbees and wide ranging compatiability with DVD players, including my own.

If I can add one final software point: DVD Shrink is the best ripper around but I've had poor burn results with it. Write your VOBs to disk but burn them with Nero.

DVD Shrink uses Nero for burning.