When you get your screws remember course are for softwood fine is for hard
also check on ebay
Phillip is right you dont want to go thru the wood or youll be drilling in the base of your kreg which would be a real bummer
Phillip is exactly right. All of your settings are correct, using the 1-1/2" markings on the jig and on the drill bit. Your drill bit should not exit the end of the 2x4 when properly setup. It should stop just short of exiting the workpiece. This is important for several reasons, which I won't get into here... just know that you are doing everything right so far!
As for your screws, Amazon sells Kreg screws in bulk packages. As do many Kreg retailers including Rockler, Woodcraft, and many more which you can find through our dealer locator.
david.... check your drill bit . make sure your stop collar is set. deep enough. to buy screws in bulk go to your home centers. i buy all my kreg supplys from menards around 18.00 a box for 1 1/4 " course good luck.