Every time I try and put text of any sort onto a menu in Encore 1.0 I get an "unidentified error" message pop up that only allows me to hit "OK" and then I am returned to the working screen no closer to my goal of having text than I was before. I have read several forums that say I should install the 1.0.1 update, but when I try the install program tells me it can't find the folder that I have Adobe Encore 1.0 DVD installed even when I direct it right to the folder.
Any ideas what might be going on and how I could fix it?

Try uninstalling and re-installing Encore.
You do have a legal copy with a passkey and everything right? Don't mean to be insulting, but if you mistakenly obtained a cracked copy from someone, you can't install patches or updates.