A couple of suggestions:
i) The layer break *might* be incorrectly set. Try getting Popcorn to produce a disc image (cmd-D). If it doesn't choke whilst creating the image you can be sure that the problem lies with your burner or media. If Popcorn reports a problem, try doing a full disc copy with DVD2oneX (Preferences->Burning->Output type=File set) but set not to compress at all. Try everything again on the resulting VIDEO_TS folder.
ii) Try different media but before buying anything else:
iii) Check what firmware your drive is using and see if it's the latest
here. If you do need to upgrade the firmware, look
here, especially the last link in -chef-'s post. The complete package you need is to be found
here but make sure you're clear on the process before you do anything.
If you try all these suggestions and still draw a blank, try compressing the folder a very small amount with DVD2One. If you're very keen on maintaining the original quality, at least for archival purposes you could split the layers with the same app and store each on a separate disc. The downside is that you'd lose the menu.
No need to defrag, it'll have no effect whatsoever on this problem.
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