I just tested the "Musik-DVD" option under my WOC 10 (German twin of EMC10) without any problems.
I'm running XP Home SP3, IE 7 and WMP 11!!!
For my test I added 150 different mp3 files with different bitrates from 128-390 kBit's/s also some in CBR and some in VBR. Some includes a label , some not.
"Musik Disk Creator" converted all added soundtracks to Dolby Digital AC-3 (choices are: Dolby Digital AC-3; MPEG 1 Layer 2;PCM) .
As said before, no problems at all. The Disk is playing fine on my externel player and all buttons are working as defined. Even all sorting options are available and, if there, the coverlabel for the track is shown also.
May be that EMC 8 has some difficulties with your PC configuration, so the alternativ could be EMC 10.