[dax702] “Something else I just noticed actually is that Encore didn’t put an AUDIO_TS folder in the image file either.”
You don’t need an AUDIO_TS folder unless you are authoring to the DVD-Audio format. Encore authors to DVD-Video only, and DVD-Video requires only a VIDEO_TS folder, not an AUDIO_TS.
Parent folder = containing folder. In other words, if you want to add a file to the ROM content, you put it in the folder, and then choose the folder in Encore for the ROM content. If you want folder1 full of files to be added to the ROM content, you put folder1 inside folder2, and choose folder2 for your ROM content.
Capisce?