I was able to make a DVD without problem of your test movie.
Step 1: Create a new project: SD 720x480 Anamorphic (the original is widescreen) and frame rate 29.97.
Step 2: add media to project storyline
Step 3: Share to DVD
Open the Settings tab and set Output Device: Hard Drive.

No problems.
The output is a *.img file (disk image).
I think you can just use Disk Utility to burn the disk image to DVD. I think I'd be inclined to recommend Toast as a better disc burner.
If you try to go directly to DVD, then you're "pushing" a lot of data at the disc recorder which is trying to burn the data "in real time". It's not like saving files to a hard drive. DVD is notorious for disc buffer underruns and overruns (they have to receive data at a specific rate.) In that case, it's more important to keep the data rate between 5 and 8MB/sec (which is the maximum data rate the DVD standard allows.) Burning a DVD like a data disk (image copy) is a lot easier for software and burners to handle, it's more reliable.