Your sequence settings look incorrect. 1440x1080 29,97 while the clip shows 1920x1080 59,94.
If you are going to dvd leave it like it is, but use a preset and do not use match source attributes.
Import the . m2v and .wav into Encore.
BTW bad practice putting files on the desktop.
Under extra/view there is an option to reveal extentions, might want to turn that on.
Not sure if its called extra/view as i am on a non English OS.
What is your intended purpose for the video ?
Is it to burn it to a DVD ?
If not then MPEG2 DVD is not the best setting.
The purpose of making 2 files ( one video and one audio ) has to do with how DVD players play the file.
When the file is Muxed into one single file DVD players have to break apart the audio and it takes more work.
Maybe other can expand on the reason of why not to Mux your audio and video better. I read a good article on it but cant remember.
To burn onto dvd is H.264 Best Quality++??
The particular one shown in exsample I think I wanted to do you tube so I wantd to keep hi def but keep both audio and video in 1 file for ease of upload.
Mpeg2-dvd ntsc widescreen high quality.
Best to leave it two files.
If its one file Encore has to pull the audio from the video, do its encoding and then paste it back together again. Unnecessary action.
But if you still want one file set the multiplexer to DVD.
If you really want it in one file you can click the multiplexing tab and click it from none to DVD and it will mux it for you.
If your trying to make a YouTube video use H.264 and choose the YouTube preset.