Hi Friends,
I know this is old, but I had the same problem and found a different solution so I thought I would list it here.
I had this same problem followed by the same righteous anger. I sized down my Photoshop menu’s to a uniform 720×480, but that didn’t give me the fix I needed. I found the issue was with my timeline, the error warned me it was the timeline to (it has my timeline name listed, so the menus are likely irrelevant). In regards to another problem of Encore and the audio being out sync, I put my video into the timeline after a second of nothing. So if the timeline was played straight through, it would play black before coming to my video. Putting a chapter mark on the beginning of my actual video and linking my “play” button to that chapter fixed my out of sync audio. However, this video not completely at the start of my timeline was causing my burn to fail. After I pushed the video all the way over, the burn went fine.
Hope that helps.