Error -128 usually means a disk I/O error - in other words, the Mac is having trouble reading from a CD. This usually results from a scratched or dirty disc, but since you say that the CD's are brand new, then it is certainly unusual that you would receive this error. There may be an issue with the CD that isn't necessarily visible.
iTunes does tend to handle damaged CD's a little better when using error correction to import. The importing with iTunes may seem effortless, but iTunes won't present an error message when it encounters an issue reading the CD. Instead it will just go back to a damaged area of a CD repeatedly until it is able to pull something off of it.
In order to delve deeper in to finding out more about what is going on with your particular issue, it would be awesome to see a System Information/Profiler report just after the error occurs. So, would you be willing to replicate the issue in Audiobook Builder and then just after generate the report and send it over to us at
support@splasm.com?
To generate the report, if you are on Lion, open /Applications/Utilities/System Information.app. Go to the File menu and select 'Show System Report'. Go to the File menu again after the report opens and select the Save option. Make sure you save the report to a place where you can find it, such as your Desktop.
If you are using something other than Lion just launch /Applications/Utilities/System Profiler.app and select "Save…" from the File menu.
You can then attach the System Profiler or System Information report to the email to us and we will be happy to take a look at it.
Thanks!