Thanks for the quick reply, freshburn.
Roxio Converted items are being deleted. And, yes, Toast 7.0.2 (one of the reasons I moved to Apple Lossless vs AIFF because of the music encoding issues.)
It does not go back to the menu (I don't want it to either so that's goodness.) It goes directly to the next chapter automatically. The effect on the DVD Player on the Mac is that it goes to a "Pause" state and then "Play" continues with the next chapter. No manual intervention is required. Again that's goodness as well, just need to play through the chapters without stopping.
Chapter 1 -- pause -- Chapter 2 -- pause -- Chapter 3, etc.
Chapter 1 -- Chapter 2 -- Chapter 3 (as I would expect to see every time.)
Drag a playlist from iTunes into the DVD Music window (shorter tunes would be best to recreate quickly.) It will create a Playlist DVD "Title". After you burn the image, mount it. Watch the "Play/Pause" button on the DVD Player as it moves between the songs (Chapters). You should see it go to Pause then Play. This doesn't happen with movies just music DVDs.
Actually my Track Pause option allows "None". Which, in Toast 6, was honored as zero seconds. Now that I look at that option in my playlist I have no options to choose from. It shows "none" by default but when I select the pull down the options are empty (looks like it has 4 items to choose from, but they're all blank.) That could be part of the issue.