Here are my findings doing some testing.

1. No problem producing the video made up entirely of PIP tracks to H.264 1080. (No video in master track)
2. Trying to burn to AVCHD disc failed at one particular clip.

My results.

1. Moved the bad clip to a different part further down the timeline and it burned successfully. I then compared the new clip in the same position where the other one failed and the only difference was it had a fade in ticked and the failed clip did not.

2. So I re-opened the project and simply clicked the fade in option on the bad clip and the disc successfully burned to a folder.

So this may not be the solution for everyone who has a disc failure but this worked for me.

Just a note if this information gets back to Cyberlink, in the last 2-3 years of using PD6,7 & now 8 most if not all of my problems with PD have been at transitions very rarely if ever in the middle of a clip.

Cheers

Robert2 S My youtube channel====> http://www.youtube.com/user/relate2?feature=mhsn