So here I am with more information
I went through all the images that were blacked out during the encoding process and when I double clicked them I could see the image, and then I did the quick fix, for some pictures it fixed the issue but for a dozen it did nothing. I even resized the source picture to down size it in 800*600 and no luck.
I then tried to redo the entire project with Video Wave and the problem is showing up.
But I found a workaround,
I went back to edit the movie from My DVD, and there is an icon called "OUTPUT AS", so I went through there by making specific selections for DVD playback and it created an MPEG of my movie including all the photos with all transitions and some clips I had in there. The result was perfect, and I created a new project with that MPEG file, burned it, works well.
It's just too bad that Roxio has this uncool bug in the software during encoding. I have spent many hours troubleshooting a feature that should have worked in the 1st place. What good does it make to build an entire project for the only purpose to burn it on DVD (The module is called My DVD) if the feature is not letting you.
Thanks for your Help Sknis, it is always nice to have people in forums that want to help.