ProjectX setting needed for Newbie

[jkongo]

I'm using ProjectX to edit out a commercial that's in the middle of a 2 min DTV (test) recording. After I cut and save (to .m2v format) my picture freezes during the ad that I have tried to remove (ie. instead of cutting out the ad the movie length stays the same and the picture just freezes until the ad is over and then continues playing the non-cut section as normal.

Is there some setting that I need to tick to make projectx really cut out the ad ? I have tried a few settings but not found the right one. It looks like projectx does not actually cut out the ad but just freezes the last frame and holds it until the ad is over. How can I fix this ?

thanks in advance for any advice.