Ross just reminded me that not everyone knows this handy little tip on how to burn VIDEO_TS folders using DVD Studio Pro. I guess it's one of those things that us editors do so often you think everyone must know.
01) Fire up DVDSP.
02) Hit Command + F for "Format..."
03) Under the General tab tap the Choose... button for Current Directory.
04) Select the folder ENCLOSING your VIDEO_TS.
05) Tap "Burn"
Like Ross mentions, ignore any warnings.
06) Think like a client™.
(which means test your disc!)