I've burned two disks now from a folder - one using PD 6 and one using the new PD 7. I did both in exactly the same way. I opened my video burning software, chose Video and then DVD Video_TS.
When the window opened I searched for the files - Audio_TS and Video_TS that had been saved to the folder.
In my burner software there was a disk icon called Video_TS. I dragged the saved Video_TS file onto it. It opened into several files in the right panel. I did not drag the Audio_TS file as I'd read somewhere on the Internet, that is was unnecessary. I then clicked on Burn and away it went. Both disks played just fine on my stand-alone DVD player.
I should add that I had added Chapters and a menu to the second disk and they were there as well.