In Video Studio 8 it is worth checking your output settings as follows,
1. From the File menu select Project Properties
2. Ensure that the Edit file format dropdown box is set to MPEG
3. Click the Edit button
4. Click the Compression Tab
5. Set the Media type to PAL DVD (or NTSC DVD if you are in North America)
6. Click the OK button twice
6. Continue your project to completion as normal
Try that and please post back. If that does not resolve the problem can you post back and advise if you are launching Movie Factory from within Video Studio (i.e. from the Share Tab > Create Disc) or if you are launching as a separate programme.
COMPAQ something or other with 500Gb Boot Disk, 1Tb external Firewire Disk, 4Gb Memory and a super duper sound card, 19" TFT Monitor etc etc etc
Sony TRV33e : Sony TRV310e : Canon XM2
Sony Vegas Studio editions to v11
Remember, there is always more to learn than there is to teach.