Trouble Authoring DVD

Hi, I am trying to author a DVD using Encore but whenever I go to Build DVD >
Disc > Build and then attempt to actually build the disc, the program has
trouble importing one of my video files. All of the settings are default but
when I press "Build" it runs through as if it were
encoding/transcoding the disc but then it always fails. It happens with one
particular file (an avi file) that is part of my dvd. Does anyone have any
suggestions of what I could do to solve the problem (or suggestions as to what
the problem could be)?

I have gotten an error message once, but I'm not really sure how it relates.

"Menu Photoshop file changed outside of this application. Do you wish to
reload the image from the Photoshop file? (any unsaved changes will be
lost)"

What type of detailed information?

I'm unsure of what exactly to tell you, but if you could be a little more
specific I will pass on as much as possible.

It is an avi file about 1.1 GB in size and running for 16 minutes, I made it
using footage compiled from DV Tapes that I then edited and created as an avi
file using Premiere Pro.

It is the first file that the program attempts to transcode after I have hit
"Build", so I am not sure whether there is anything particuliarly
problematic about this file, or whether it is a problem with my Encore
software.

There is one more video file which composes the DVD, and it is roughly 26
minutes in length and 6.13 GB in size. Each of the two video files have chapters
added to them by me, and each of these chapters is linked to menus which I
created using Photoshop (in conjunction with an existing template from Encore).

If there are any ways in which I can be more specific to better help you to help
me, please let me know.

Are your transcode settings for the AVI file set to "Automatic" or
have you used a preset?
If the former, then please try Ruud's suggestion & re-export from Premiere.
If the latter, please try resetting to "Automatic" & go again.