I had the same transcoding error when trying to burn a movie that is 1 hour and 8 minutes long. I FINALLY got to work. Here’s what I did:
1) I saved a copy of the movie from my external drive (FAT32 file system) to my C: drive (NTFS file system).
2) Defragmented my C: drive.
3) Cleared a bunch of files from my C: drive so I had 20GIG of free space.
After I did these things, the movie burned to DVD fine. And it looks great on the TV!
There are a lot of other great suggestions on this forum:
https://www.elementsvillage.com/forums/archive/index.php/t-3101.html