I do like and prefer ISO format, but if I switch everything back to ISO then neither SageTV nor my Win7 Media Center systems will see the movies.

The switch to VIDEO_TS was only an attempt to be compatible with the broadest range of solutions.

I downloaded BOXEE expecting VIDEO_TS/VOB format to be supported since XBMC and the rest of the media playback world seems to support it.

Hopefully it is fixed soon.