I tried to follow the instruction from one of the threads about converting from AVI to MPG format... but cant open the video file on virtual dub. The message reads : "couldnt locate decompressor for format XVID (unknown) VirtualDub required a video for window (VFW) compatible codec to decompress video. Direct show codecs such as those used by window media player are not suitable".

...what do I do next?? is some kind of codec needed? i'm pretty new at this...so i need all the help i can get!

It's indicated in plain character :
"couldnt locate decompressor for format XVID"

So you need an xvid codec.
www.codec-download.com

i thought i had it...guess not ! Thanks for your help!!