You were right in telling me that the DVD does not recognise the media.

I bought a new DVD burner and tried on it. I used Ulead Media Studio Pro 7 and it WORKED like charm!!

I guess it's my DVD-ROM. It is an old one ( 4 years old) and I guess old ones do not support mini DVD's eventhough they have the "slots" for it in the drive.

Now I'm happy. Thanks a lot for your replies.