Can't import m2v file from Premiere to Encore

Premiere CS3 was exporting an m2v file into Encore CS3 to direct burn a DVD
fine. Then today it won't. Encore shows the "Import as Asset" box and
after 20 or 30 sec, the m2v file shows in the Project Panel but the "Import
as Asset" box hangs. The progress bar never advances from 0%. If I cancel
the box, then the asset in the Project Panel shows "Media Pending"
forever.

I tried re-installing Encore CS3. I tried deleting the "Media Cache"
folder in the registry. Didn't work.
As one user recommended, I relocated the Media Cache database Library file. That
just screwed up Encore.

I tried importing the m2v file (3.3 GB) as both an Asset and a Time Line. I can
import the Premiere generated wav file for the project
but not the m2v file.

2GB RAM, 1.2 TB HD (four 400 GB RAID 5), XP Pro, 3.2 GB Core 2 Duo Processer.

720 x 480
Deinterlaced
Quality = 5
VBR 2 Pass
Min Bit rate = 3
Target Bit Rate = 5.8
Max Bit Rate = 8

I selected 5.8 to try and get as much resolution on the DVD as I could for the
best picture. When I went over 5.8, it said it was too large so I figured 5.8
would be OK. Hmmm. Too much, huh?

Your settings seem to be OK.

What changed on your system (software and hardware) between the time Encore
accepted the .m2v files from PPro and now?

I don't think anything changed except for updates to Norton Anti-Virus and maybe
Windows XP.