Create AAC grayed out

I have selected AAC option in Import settings, I have selected the MP4 file I want to convert, yet the option remains grayed out in the advanced menu. I have a PC and am trying to extract the audio from a MP4 file (a music video from which only the sound is what I want to have on my iPhone 5s). What am I doing wrong? Yes, I'm sure the file is MP4. The video is in under the "Home Movies" if that helps.

It is not protected. It is a video I uploaded to itunes from my computer. Is the second sentence supposed to be what I should say? I can see an advanced menu. Clicking on it ("it" being the file), hitting alt, and going to file and then "Create new version". In the menu that opens after scrolling on that, there's 3 options and the last option is the convert to AAC, which is grayed out.

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"Create outlines" grayed out for text-- what is the RIGHT option??

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Realnise,
No, if you have three separate instances of Type, as it seems, for each of these you have to make sure it is selected in its entirety.
With regards to your posts, you may have lost your original ID. You may ask about that in this forum:
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Why can't some one explain this problem clearly even from apple guys. ClaraMGR i know your problem clearly.
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Web ADI – Create Document, Save to Form Function is grayed out, therefore it can not be used
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Create AAC grayed out

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