Why can't the replication house read my DDP images files submitted on DVD-R?

Beware of the Toast "Mac & PC" data option. It creates the PC file system in ISO instead of UDF format, and ISO-9660 supports files only up to 2 GB in size. The replication house are trying to read the DDP file using a PC, and "see" the incorrect file size.

Instead, in Toast 6, use DVD-ROM (UDF) and Data format. (Not video, since you are writing a DDP image file.)