Is this CDRWin? If so don't check RAW for writing. The Cue Sheet tells CDRWin what to do. I get this on my Yamaha 2100S which supports DAO. It's important to have RAW for READING because that takes the 2352 bytes per sector rather than the 2048 without RAW. When you burn, the 2352 bytes goes across irrespective of the behaviour of the RAW on writing function.

Where CDRWin falls down and where CloneCD picks up is on the treatment of the remainign 96 bytes of sub-channel data that often embodies protection info. This needs to be transcribed as well unless you have patched a protection fix. CloneCD is best for getting round this.