I had two clients have the same problem. One guy has an HP laptop with Windows XP and WinDVD gave him the error "Could not create overlay" when he tried to play a DVd I authored in DVDSP on a Mac. Another identical laptop in the same office with the same setup played it fine.
Another client was playing another disc just fine for a week, traveled to another state and got the same overlay message. Nothing on his laptop changed. He was alos using WinDVD on XP.
Anyone hear of this message when playing DVD-R media? In both cases the disc had a simple menu as a firstplay with a single button and a single track on the disc. I burned Maxell DVD-R 8x media at 2X on my Mac via Toast 6.