Ok so, I went to work on a chart. When I start a new project in EOF and pick the mp3, when the command promt box goes away Im left with the an audio that wont play and extremely short graph.

The MP3 may be non-standard or otherwise something LAME couldn't decode. You could check if EOF's log file displays anything unusual after this occurs. If you can send me the MP3 file, I can look into it, but the quick solution is probably to convert it to OGG outside of EOF and title it as guitar.ogg and EOF should accept it.