Digital copy transfer errors out in iTunes 10.7after update

I get this message after it finishes copying.  I'm the administrator and only user. iTunes 10.7.0.21 is running on  Windows7 64.  The DVD is in perfect condition. Disney tech said there used to be a safe mode reboot with networking to bypass this error message, but after the latest update it killed the work around.  Any suggestions?

I am now trying it again, but it is still doing the same thing, and now I have decided to post a screenshot of what exactly I am looking at on my end:
http://img399.imageshack.us/img399/5107/tdkproblemqw7.jpg
As you can see, it just paused/froze for some reason that I cannot seem to figure out. I have put another movie, Forgetting Sarah Marshal, on my iPod Touch successfully and without any problems. I'm stumped!

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