Why are the iDVD menus grayed out?

I downloaded a movie from iTunes, downloaded fine. Opens and plays in Quicktime, no problem. The format is mp4 and m4v (tried both). But when I put it into iDVD to put on a DVD disk, cannot do. Using the magic iDVD choice, I can set it up, drag the movie in, preview. But I get a message I need to access "Project info" and change the settings. However, that menu item (and almost all the other menu items) are grayed out, so can't do it.
So what is the problem? I tried both formats in iDVD and neither will work. Is it the wrong format?

Yes, I tried it again by seeing the song in the main library as opposed to seeing it in a playlist. Again, the lyrics tab was grayed out. I was able to see the tab, however, when I did a "get info" for one of her music videos I have.

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