I'm trying to georeference an aerial image of a site over it's exact coordinates using WGS 84. The same coordinate reference system is used on the settings. I'm not sure what to do from here, is there something I'm doing wrong? And just to add, I have tried the original image in both JPEG and TIFF. Both end up saving as GeoTIFF's and there's no other option in that regard.
For georeferencing, you are supposed to grab four points within the image, and supply the coordinates in the target CRS.
As far as I see, you have entered the same coordinates
dstY for all points. That will not work.
Apart from that, I see a positive value for
dstX in the last row of the second screenshot (but not in the last). That might be wrong too.
Furthermore, the source raster should be in RGB, not paletted colours. You can transform that with Gimp, or inside QGIS with
Raster -> Conversion -> PCT to RGB ....