How do I get CS4 Change Quality Presets to be used and remove black bars?

In Encore CS4 I CAN change the quality preset to what I want, but then when I go back to the project it does not stick.  I tried to get to transcode settings, but they are greyed out.  There does not seem to be a way to "USE" the quality preset I have saved!
This is a single video clip that I sent to Encore from Premier Pro CS4 so I could make DVD and BD's.  However it seems I am unable to make a DVD at 4 Mbps (so I can combine this Premier Pro Project with another on a single DVD) no matter what I try.  Also I notice the BD I made was not m2v like I am used to in CS3, and therefore are not sure I can combine it with a menu and another clip on a single BD as I have done numerous times in CS3 Encore.
I also notice as I look at preview, and then also when a made a default setting DVD that there are black bars on either side of the picture.  This was a 1440X1080 60i project in Premier Pro CS3 and I am desireing to make ait a 1920 X 1080 DVD.
Neither of these were problems in Premier Pro CS3 and I am thinking the way around this is to spend the day or two and redo the project in CS3.  I have done many projects successfully in CS3 and mistakenly thought I could just pick up the project in CS4 and be successful again.  If anyone knows how to resolve these in CS4, it would save this extra work, if not, I will join the crowd with CS4 "issues" and go back to CS3.

First, on the black bars.  I do not want them at all.  I cannnot post a screenshot now as
file attachments are turned off temporarily, but they are about 5% on either side.  Totally unacceptable especially when in CS3 when exported to Encore there are NO black bars either visible in Encore or in the resulting DVD's
On the options and is the preset saved.  I can close Encore and open it afresh and find the preset that I saved listed in the dropdown of presets with the name I saved it as and all the settings the way I want them.
On the issue of Transcode settings when selecting the resource...  When I select the resource in the Project panel, or in the Timeline tab, the Transcode settings is greyed out.  I have consulted the help screens and forums for various ways to change the transcode settings and none of the suggested ways work.
It looks like my CS4 install does not work the way yours does.  I am about to completely unistall CS4 and CS3 and all other Adobe products and try a fresh reinstall to see if that works.  Most likely I will simply reinstall CS#, since that works, and abandon CS4 for now as I am getting way behind on my work, and know I can finish with CS3.  I have also heard form others that Sony Vegas is really solid and does not have all these weird bugs such as seen in CS4 and CS5, and is a much less bloated product and does the encodings faster.  Since it is also less expensive, this seems too good to be true, but work a trial.  So first rip every Adobe product off  my PC and format the HD and start fress with JUST CS3 and get my work done.  Then try Vegas to see if it is as good as my buddies say, if so bye bye Adobe!

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