Azureus 3 Problems seeding upload

I have pestered Dolbyman over the last few days and forgot to back up my messages (Doh).
I seem to be rather dim here so I need to know what I am doing wrong.
I am trying to upload but I can't get it to seed.
I have read and re-read the instructions in the forum and still can't figure what I am doing wrong.
Here's what I am doing:
In Azureus, I'm creating a new torrent (file - new torrent), selecting an obvious place for saving it to (C:/Torrents) inserting the correct URL, pointing it at the file and it creates it.
I click the upload button on Mousebits and that results in the "download" box.
I click on that and, when it asks what I want to do with it, I select "save to disc" and select the folder where the file I want to share is. This creates a new torrent file in that folder. After that, nothing happens. If I double click on this new file, it opens in Azureus, checks and then tries to download *which it can't, of course).
One thing comes to mind.
When creating the torrent on the , should it include the extension (ie "video.wmv.torrent" or just "video.torrent")I have tried both but the second option got a MYSql error box up saying it was a duplicate (no, I have deleted it from the site as it wasn't working).
Help!
Eyore

when you create a new torrent, you upload the torrent to the site.  then you delete the torrent you created, and download the .torrent file from mousebits.  when it tries to find the files, you have to manually tell it where the files you createdin the torrent are.  that's about it.

I save the original torrent in a different folder and direct the one from mousebits to the folder the file is in (on a USB external hard drive).Does it matter where the files are? Do they have to be in the Azureus folders, for example.
I am assuming that I am doing something wrong somewhere because nothing happens so, presumably, the torrent doesn't match the file.
The torrent I create seems to say xxxxxxxxx.wmv.torrent - should I delete that ".wmv" part before sending it? Or should I delete it from the downloaded torrent?
None of the other torrents seem to have the file type on the, just the title followed by .torrent.

None of the other torrents seem to have the file type on the, just the title followed by .torrent.

Click to expand...

no it's just comsmetics .. you can leave the file extension in or out

I must be doing something really dumb then because the torrent file doesn't recognise the file, even though it's in the same folder. Something that is so obvious (which I am missing) that it doesn't come to mind.
Double-click just tries to download after checking..
Once you download it from the site and save it in the same folder as the share, it's supposed to go to Azureus automatically but it doesn't therefore the torrent must be wrong but why, I can't tell. Neither does a double click work as it should,

Double-click just tries to download after checking..

Click to expand...

only if you point the dialog to a folder where the source file is not

maybe come to the irc channel so I can guide you in real time through it

SOLVED
The problem was that I had set  Azureus. to automatically download to my default directory (no prompt). Clearing the check mark brought up the box to save in the correct directory.
Thanks to Dolbyman's patience and understanding, everything is OK now.
Many thanks.