I just started using Vegas and I have some problems. Any help is appreciated!

First: My clip preview won't play back, and I have it set on FX Bypass. How do I fix this problem? Please include noob friendly instructions. Infact I only see these wave lines in the timeline. Is vegas not able to play my .avi video?

2nd: I want to add black bars to the bottom and top of the screen to create a wide screen kind of feel. My camera is old, so I have to add it the ghetto way. How do I do this?

3rd: How do I add text to the video?