A good place to start is with the Help file.
Best practice is to keep video assets on a drive that is NOT the C: drive, if possible. On that same note,
avoid overly long file names, as I see with your "My Documents" string. Create your own folder for this stuff.
Next, I see that "Target" and "MAX" are both set the same. Normally, the Target is somewhat less than
Max...since "Target" really means AVERAGE bit rate.
For YouTube encodes, TURN OFF "Match Sequence Settings", and choose the H.264 format and then pick the "YouTube widescreen HD" preset. This will encode 720p video. Set frame rate to 29.97, and choose "Use Maximum Render Quality" box at the bottom of AME window. This should provide good results for YouTube viewing.
Safe Harbor Computers