Encore Trouble

Hello all! I'm having some trouble with Adobe Encore cs6 currently. I've seen this problem posted around the forums, but not answered in the way I'm currently experiencing it.  Anyway, I've just recently finished editing an HD (1920x1080) project using Premiere CC, exported it using Media Encoder (1080p 29.97 fps using h.264) and now I'm trying to burn it to a DVD for a client using Encore - which I thought would be the easiest part of the process. I've heard of people having trouble getting the resolution to go above 720x480, but mine seems to be big enough, but it's quite grainy in blurry when it looks fine in Premiere CC. The footage was shot progressive, but it seems to me that Encore is automatically changing it to interlace (which I've heard it does). Now, I have looked for a solution to this (which appears to be Encore CS6 produces Pixelated and Grainy DVDs...????) BUT when I right click my timeline OR video file in the project menu in Encore, the "Transcode Settings" option is grayed out. So I'm not sure what to do at this point.

the Transcode Settings option grayed out in Encore:
Something I just noticed. The Transcode Settings on the video file is clickable, so I edited the Transcode Settings per the instructions in - Encore CS6 produces Pixelated and Grainy DVDs...????, and am exporting an ISO currently. Will reply with an update.

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