Go to Options - Preferences - uncheck "default pause time
between regions" it defaults to 2 seconds. Leave "default
pause time before first region" set at 2:00 seconds (will
not burn without it).
This may help. I do cross-faded compliation cd all the time
with no gaps.
I burned a disk with cross faded tracks with the second gap setting at 2:00 and at 0:00 and there was
no difference in playback. neither had gaps. that setting is probably not the problem after all.