Yes... You are correct.... You can burn a PS2 game to a DVD-RW disc and it should play in a V5 or higher....Then you can just erase the disc and do a final burn on a DVD-R....
What's strange, is that in my V5 PS2, the DVD-RW disc seems to play as good, if not better, than a dvd-r..... Oh well, it plays them both, so i'm not complaining..