So...
1) Rip all the files you want to your hard drive.
2) Add the VOB files in the order you want into Shrink. (see example)
3) Set the start and end times of each VOB file so it only contains the songs you are after. (see example)
4) Burn the disc!
If you could find a 2 sec blank section of video you could also add this inbetween each song, giving you your 2 sec gap.
Note that you don't have chapter points or a menu.
EDIT: Just had an idea...you can add chapter points to this...with DVD Lab! Instead of writing to a disc in step 4, write to your harddrive. Now open DVD Lab, import the VOBs you created and then add chapter points to it.
IDEA 2: Similar...but it uses DVD Lab so you can have a menu and chapter points (30 trial available for download).
1) Rip all the files you want to your hard drive.
2) Add one VOB file into Shrink.
3) Set the start and end times of the VOB file so it only contains the song you are after.
4) Save this into a VOB file on your harddrive.
5) Do steps 2-4 for each song so you have a VOB per song.
6) Open DVD Lab and import all the VOBs.
7) Now you can create a menu (or not) and add each VOB file. You can set it to jump to the next VOB file when the first one finishes (or back to the menu). You can also add chapter points.
8) Burn the disc!
I realise these are only outlines but if you can't figure out a step just reply and we'll try to figure it out!