Vertical Black Bars, Aspect Ratio Problem. NEED A FIX
You have set the wrong pixel aspect ratio (that has nothing do with the aspect ratio of your video resolution). Notice how you're source footage (the mpg file) has a pixel aspect ratio of 1.21 but you export it with a pixel aspect ratio of 0.91. Also your sequence is set to a pixel aspect ratio of 0.91 (that value in parenthesis next to your resolution in the export settings where the source specs are listed).

Change your sequence settings to the same pixel aspect ratio as your source (1.21 or simple the widescreen setting in the drop down menu), aswell as in your export settings. Though your might wanna export with a square pixel aspect ratio of 1:1 which is what youtube prefers. You will have to change the resolution for that though.