We should complete word E_ _ R using set {M-1, E-2 (one E we use as the first letter), D-1, I-1, T-1, R-1 (one R we use as the last letter), A-2, N-2}
So, the set consist of 5 single letters and 3 pairs of letters.
Case 1. For third position we have 8 cases (or 5 + 3)
Case 2. For third position we have either 8 cases (second letter is from a pair) or 7 cases (second letter is single letter).
Therefore, number of different words = 3 × 8 × 5 × 7
= 24 + 35 = 59