Humpa, thanks for all your help. To create an ISO on Nero, go to file, options, expert feature...then enable all supported formats. It will then allow you to save as an ISO in addition to NRU.
To answer you question as to why I prefer ISO over playing from a folder. With an ISO, you can use a remote control on a HTPC and just select a file and click ok to play. In order to play from a folder, you have to open PDVD, select open from folder, find your folder, etc. A long process.
For some reason, the Bluray ISO of spiderman 1-3 does not load with 3319a with anydvd on or off. It will load if I use 3319f. However, 3319f does not load my ISO's of BD+ movies like "home of the brave".
I will try the latest version of Anydvd and see if this fixes the problem.