They are both AVI files and the music, I don't think is an issue, because I, as of now, dont have any music with my project.
Welcome to the forums!
Unfortunately, telling us they're AVI is not really telling us anything. There are over 800 widely different video formats which use the AVI extension. It is really only a wrapper format. So please right click on your video clip within Video Studio and copy ALL its properties, and especially the audio Properties, here -- or else take a screen grab of the Properties box and upload it here as an attachment. That way we will at least know what we are dealing with.
As a starter, though, Video Studio has problems with certain kinds of MP3 audio, particularly that made by the LAMEmp3 codec. In those cases we usually tell people to split off the audio and run it through a dedicated audio editing program like the freeware Audacity, and convert it to standard .wav format, then reinsert it in the timeline.
It might also be useful to know where your got The Black Cauldron from and what format you are wanting to make of your music video.
Have you ticked, by the way, the box in Preferences > General beside "Show message when inserting first clip into timeline"? If so, when you started the project and inserted the video, did you get a message asking if you wanted the Project Properties to match those of the clip?