Its easiest if your music is in a simple MP3 format, I use a recorder I downloaded off the internet a long time ago and just record them from Napster to use. Still downoald and pay for them to burn CDs with, but theres an encoding in all Napster songs that, evn if they'll play in an MP3 player, they can't be copied or changed in format.
As for the distortion, I assume you're talking about that little preview window you use to check the video? When it screws up like that, pause it for w few seconds (or until you see the image fix itself), then continue. Sometimes when previewing the video and audio don't mesh up with each other quite right, or the video seems like it needs to be smoothed out when its actually fine, you just have to play with it a little.