Erase the DVD-RW with Disk Utility before you start iDVD
Eject DVD-RW and start iDVD
Select burn DVD, then iDVD will prompt you to insert DVD-R
Insert DVD-R, and as soon as iDVD starts encoding/multiplexing, press keyboard eject
Insert DVD-RW, close drive, and iDVD will write to the DVD-RW
Voila, instant DVD on DVD-RW media !!