I think it's the way you are burning it. On my Mac, when I burn a DVD, I actually *do* go to the Data tab on Toast and burn a DVD-ROM. The first thing I have to do before I drag the VIDEO_TS folder into the window, however, is hit the New Disc tab and give the disc a Name. Then I drag the VIDEO_TS folder onto the disc and burn it. If I don't do that, then I end up with just a regular data disc that acts like yours does.
If you don't see something like that (a way to hit New Disc first before dragging the VIDEO_TS folder onto it), you may create a Disc Image using Toast as you suggested. Follow steps 1-6 on
this guide (take a look at the picture there to make sure you did it right), but then go up to File / Save as Disc Image and it should create a Disc Image for you.
I hope that helps!
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