Firstly, yes it is Premier Pro v1. It started as Premier v1 up to 6 and finally v6.5. The next version was called Premiere Pro. Generally referred to as v1 because it is, after all , the first version of Premiere Pro. However, Adobe did keep up their numbering system and the help/about does say v7 as I recall.
As I hinted at before I'm not sure how to design and make a DVD from Premiere Pro. I believe all you can do is an auto-play DVD from Premiere Pro. I suspect you will need tobuild a single timeline and then 'export to DVD' in some form.
As for your screen shot... I'm looking forward to that film myself

As you can see in the timeline there is no sound. Right below the Video 1 layer you have the Audio 1 layer which is curiously empty. Hence no sound. Not sure where it's gone if all you did was drag and reop the .mov asset into the timeline. If it includes sound then you should have got both a 'block' for video and one for sound. Try dropping a copy on the 'Audio 1' layer. just guessing.