M&E Tracks?

Music and effects. Basically, everything but dialogue tracks. They probably want to dub the movie.
 
M&E tracks (complete ambient noise & all doors closing & anything you see on screen) minus dialogue.

Music & Effects track.

This is essential for foreign sales. Most coutnries offer an English track with subtitles as well as a dubbed track. If you don't have an M&E track made, you won't be selling to too many non-English speaking countries....

I got my Japanese DVD of HORRORS OF WAR today & saw a few clips dubbed in Japanese. Now THAT was entertainment...
 
M&E is the single biggest headache and expense for an Indie film. The M&E track cost us more than the film on 'Left For Dead' (then again it was ana ction film so...).

As sonny said M&E is essential and the thing that most indie film makers forget. M&E will probably mean several hours in a studio redubbing and rerecording key elements of the film. Find a damn good sound person who will work deferred or even for free. And I'd suggest do it now...
 
That's why using a good multi-track program for your audio (and actually taking the time to do foley and whatnot) is important. :)
 
Customflixs used to do a really good free guide to distribution for indies -- it appears to have gone from their new site.

However, here's their section on deliverables

Other Deliverables for Self and Traditional Distribution

Deliverables are what a filmmaker needs to give the distributor or buyer to make the sales contract effective. This is your end of the deal. It's more of a burden for those entering into studio-backed arrangements, where the legalities of the business are very specific, but even a supposedly-simple, self-distributed, home video deal can find you searching old files and spending some money. In order from cheap-and-easy to costly-and-time-consuming, be prepared to ante up any or all of the following:
Copy of the shooting and/or production script. Some distributors may want the shooting script; some will want the production script.
Dialogue sheets. Necessary for foreign sales, a word-for-word transcription of all the spoken language (dialogue and voice-over) as it appears in the final version of your film.
Music cue sheet. A listing of each music cue used throughout the project, with accompanying song titles, duration of the cue in minutes (in tenths of seconds), artists performing the music, and publishers (BMI, ASCAP). Music cue sheets are necessary for television sales, as broadcasters and cablecasters maintain licensing deals with the music publishing companies to pay royalty use rights.
Trailer. Hopefully you've created one for promotional purposes before this point.
Production stills. Discussed previously.
Poster, one-sheet, postcards and other marketing materials should be considered. This is very dependent on the kind of deal you are entering or the type of self promotion you are planing. Those signing with studios and large independent distributors won't need these items. Small, direct-to-video and English-speaking foreign buyers may stipulate such materials as necessary to the agreement. Self-distributors should be well-prepared with these items if they are essential to their marketing and promotional plan.
M&E tracks. Music and effects tracks involve separating every single sound effect and music cue on an audio track separate from the dialogue in a production. This is used in foreign sales, when your dialogue will be dubbed into another language.
Copyright. Most independent films are uniquely created, thus the sole property of their creators. If that's the case, be sure you properly register your film with the U.S. Copyright office.
Clearances/releases/insurance. You'll need releases, errors and omissions insurance, contracts for use, and clearances from everyone and everything that appears in your film. From the strip mall parking lot that served as a set to your Uncle Louie who played a character to the local band that provided background music, get signed agreements stating your intentions to promote and sell (and profit from) the movie. "This is essential," says Emma. "A film cannot ultimately be distributed without proper clearances." Though errors and omissions insurance is not an immediate concern, filmmakers should budget for the expense at the outset of the production. Have an attorney (preferably one associated with entertainment law) check out everything to be sure it's kosher.

Hope this helps
 
Note on the E&). Many compnies/distributors will allow you to off set the cost of E&O against the US sale. Not always but if you find a friendly distributor they will consider this. Most of the deliverables here are easy.

The copyright PA is just a form which costs about $10.
The trailer/stills/poster/clearances should have been done along the way (again another mistake we made was not getting all clearances signed off in advance when you get the actors/crew on set!)

M&E and E&0 are the two most expensive parts. And alas the two most expensive!!!

A note on the dialgue script - this is generally a bare bones dialogue list with scene ref points, without scene description etc.
 
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