I just had this problem…
HERE IS THE SOLUTION:
go to the “build/format” menu… on “location” is the path of the folders where DVDSP makes the “build”..
in FINDER, go to the folder you founded in “location”, and delete the HVDVD_TS folder.
THE PROBLEM WAS:
i had this HVDVD_TS folder because of a previous HD DVD project.