Struggling with Envelope Distort

I create my Envelope Distort | Create mesh.

But when I move one anchor point with the Direct Select, the whole object moves, then when I release the mouse the whole object disappears. I'm stumped! Thanks!

(Hmm, when I try to attach my .ai example, I get "The attachment's aiexample.ai content type (application/postscript) does not match its file extension and has been removed." Hence the pdf attachment...)