Ok, i finally figured out what is wrong with everything.

1. wrong version of file, i had 2007.2 us pro version, it will not work with MK IV without i-drive (currently using 2007.1 us high)

2. memorex dvd-r, MK IV hates it, it will not read (maybe only my nav)

3. i had old version of imgburn i could not choose-iso-write option (used dvd decrypter)

hope this helps