I can see several things wrong here.
First, this system is what we refer to around here is a mixed mode. That is, it is an analog system with digital voice. This is NOT a straight P25 system, so all your sites need to be UHF type. In addition, you shouldn't lock out your sites - there's another consideration here, and I'll get to that in a moment.
Remove the offsets from the APCO band plan. They don't belong here. When you define the UHF site with the frequencies, you will be asked to put the offsets in.
All groups must have a quick key assigned to them. I don't see that in each of the group screens. In addition, it might be wisest to set up the audio type for each talkgroup - analog or digital.
While you can have multiple sites in a system, you are going to run into issues with simulcast distortion. It's common in every consumer - and even, to a much lesser extent, in commercial radios. You would be much better off to choose the site(s) that are physically closest to you. Each site you select also needs a quick key.
In our Uniden DMA FAQ
I would recommend reading the following articles (all links are in blue...)
* Systems, sites and groups
* Multi site trunking
* Simulcast digital distortion
I would also download the 396XT complete reference
(it's a PDF) from the Uniden TWiki site, and see if that gives you any more guidance.
Additionally, one way you might be able to at least mitigate your distortion issues would be to use location based scanning. It won't solve it, to be sure, but it should reduce it somewhat. This involves the use of GPS to basically control which site(s) you receive, automatically. That topic is also discussed in the DMA FAQ. Unfortunately it seems our database doesn't have that information in the site listings; perhaps someone in the NJ forum has it. This data should be added to the database for future users.
That should be enough to confuse you for now :.>> No doubt other folks will jump in here once they look at your file.