Short version: nothing I create fails. One step at a time, I changed to the larger pixel size and 24fps, an HD menu, a motion menu, and with a loop point.
But Jeff's version does not work for me, and it looks correct.
I am PC (win 7). None of the differences between our files seems like it would account for the problem. Much of the actual control is in the flashdvd.swf, and we don't have access to its workings.
I'd post a a bug report.