There is no AUDIO_TS folder because that folder is always empty. Some people burn their DVDs and put an empty AUDIO_TS folder in there because their older DVD player requires it. But, most people don't bother with it. When you use VLC, are you selecting the VIDEO_TS folder to play? or are you just selecting the VOBs? Is it *every* DVD that you've tried to play that has no audio?
Are you on a Mac (you said you would use Toast)? Here's a guide on how to burn a DVD using Toast on a Mac:
http://u2lynne.sandsmuseum.com/burning.html#anchor9
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