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It appears that you have set In & Out Points on your Sequence (notice the difference in the color of the Timeline Ruler at that point). Remove the Sequence In Point (in your case, and at about 00;00;08;00) and things should behave properly.
Now I've encountered another problem.
I want to export this and put it up on Youtube, and I see you're generally recommending H.264, and one of the youtube presets.
Now I've tried both the HD Widescreen settings, and the other Youtube settings and I still get some black bars on the sides. Why is that?
I've scaled the footage where needed, and everything is perfect, but when I export it, it's just not right. Are there any settings I should take a second look at, any settings I may not have correctly, etc?
Black bars are a sign that there is a mis-match between the Project's/Sequence's Frame Size, and the Assets' Frame Size, or that the Project is set up to a different Aspect Ratio, than your chosen Export settings.
What is your Sequence Preset?
What are the specs. of those Assets?
I seldom do anything on YouTube, so am not to one to ask for recs. there, but also please furnish the YouTube settings that you have chosen, as they will help others, who know YouTube.