Thanks for your response,
I tried playing with the settings (varying the bit-rate and such) and tried it using the MPEG-2 codec but still the same result. I'll see if I can find another blu-ray player and see if it has the same problem. My coworker seemed to have luck using Adobe Encore on his PC, I would have just preferred to be able to make it on the Mac. As this disc is for a client, we needed the disc to auto-play and loop as apposed to using a DVD-Rom setting.
If you have any other suggestions, I'd love to hear them because I'd like to be able to use Toast on the Mac and not have paid $20 for a plugin I can't use and 5 shiny blu coasters.