I'm putting the results on both boards to see if anyone else has an idea.
I removed the plists, repaired permissions and I still have the same problem with Popcorn 2. I put in a third type of media, Imation, and went through the steps and I got a media error that indicated that the disk failed. I quit Popcorn and launched Toast choosing the same TS folder and this time I tried the same disk that allegedly failed.
Toast worked flawlessly.