I'd insert some images, but don't know how to do that on this forum ... so I'll explain with words.
I used your procedure. Resulted with the same image you posted ... MyDvd Playtime: 59 min 59 sec. When I select the "proceed" button, the "Video Copy & Convert" dialog box displays along with the words "Encolding to MPEG-2, Phase 1 of 1 (0%)" I uncheck "Close this dialog box when finished".
After a minute or so, the dialog box disappears ... the (0%) never changes. Only the "Roxio Creator 2012" dialog box is on the screen.