This problem STILL exists in Version 2.0 (the latest RC). Any DVD authored with TMPGEnc Authoring Works 4 comes up w/ a green screen (or random screenshot from the last loaded video) instead of the menu. The music plays and you can see the options over the image if you hit up/down but you only see a green screen. The proper menu usually flashes for a second before the screen goes green.
The DVDs play fine in players, WMP, WMPc, PowerDVD, and on and on. Can't believe this hasn't been resolved yet. It was written off here as "Works for Me".....umm..
http://trac.videolan.org/vlc/ticket/3836
This was the main thing I wanted in version 2.0 as I use TMPGEnc to author all of my DVDs.....
Example (just the menu stuff):
http://www.mediafire.com/download.php?st5hakqbes9bzms