Something I should add as well to the previous question: the thing that really vexed me was I had the project open in KN and moved all my media to the trash. I went back to KN and it played fine so I thought all is well, I can safely trash. But when I did and returned to KN, the data ref's were gone and I was SOL. Like I said, I've successfully used this feature in the past once--and the remaining project file was 2 GB. That seemed right to me. This recent project file was only 200MB, but I thought that was possibly due to mp4 files for video rather than dv ntsc. Maybe that's the reason it wouldn't embed the video--KN only will do so with dv ntsc files???!
ok, well I'll add the 3rd post to my own question. I found a workaround, I guess. I did not find this in the manual and that's a bit fracked up but here it is:
You need to open your existing project in KN.
Then, open a new project in KN
Make sure your pref's have "copy audio...", "save themes..." and "save as package" all checked. I'm not sure if it needs all these, but I just checked them all.
Copy all your files from the original proj file and paste into the new project.
"Save as" the new project and it should be a much larger proj file with all audio and video embedded permanently.
I originally quit out of KN, then opened my original proj file again. With all my prefs above checked I tried to "save as" this project and it did not work. ONLY starting a new project and copying all slides to it worked for me.