I can confirm that altering the Navigation Pack setting in all the VOB files will get this working on a AD-1100W player.
I took two small AVI files and put them on a disc with the default NVE2 menu.
I tried changing the bit in VIDEO_TS.VOB only. This gave me the menu and nothing else.
Turned it on in VTS_01_1.VOB VTS_02_1.VOB and got about 1/2 a second of video. I found the 2nd Navigation Pack entry and changed that.
Now the two files play.
A very quick, easy and simple fix for NVE2 would be to put in a configuration switch for "Broken DVD Players".
The big reason I'm using Nero is that...well, it came bundled with my DVD burner and also because it'll transcode for me. Being from England, I get many avi files sent to me in PAL format, and I can convert them to NTSC on the fly without having to do anything else...of course this VOB issue is going to throw a spanner in the works.