This post is actually an answer in response to an e-mailed question from a member...

A high bitrate MPEG-2 video, or even an I-frame only MPEG video, can still be decent quality for the purpose of editing. Advanced editing, for use with something like Adobe Premiere or Sony Vegas Video, the NLE packages.

However, it cannot remain as an MPEG. It must be changed into something that is friendly with the NLE. A lower compressed AVI or an uncompressed AVI are preferable. Uncompressed AVI is suggested. While converting digital formats back and forth generally degrades video, converting back out to an uncompressed format should not lose quality from the MPEG.

VirtualDub is an outstanding piece of software to use here. However, the basic version does not cooperate with MPEG, so you have to get the "MPEG-2" or "MOD" version (which is also completely free, no cost).

If you don't already have it, you can download the one I'm using. This is a RAR file of the VirtualDub folder off my own system, and I know it works. It even has a handful of nifty filters pre-installed. UnRAR the file (like unzip) to C:\Program Files\VirtualDub

Download here: http://www.digitalfaq.com/downloads/...virtualdub.rar

Open the MPEG in VirtualDub:

http://www.digitalfaq.com/forum/uplo.../vdubedit1.gif

Go to the VIDEO SETTINGS, change to FULL PROCESSING mode. Then select COMPRESSION:

http://www.digitalfaq.com/forum/uplo.../vdubedit3.gif

Be sure the compression is UNCOMPRESSED AVI (default):

http://www.digitalfaq.com/forum/uplo.../vdubedit4.gif

Next go to AUDIO SETTINGS, change to FULL PROCESSING mode. Then select COMPRESSION:

http://www.digitalfaq.com/forum/uplo.../vdubedit2.gif

Be sure the compression is UNCOMPRESSED WAV (default):

http://www.digitalfaq.com/forum/uplo.../vdubedit5.gif

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NOTE! If your audio source is AC3, you may need to install an AC3 encoder in Windows, which will then be added to the DIRECTSHOW codecs, which can then be used by VirtualDub. There are several choices in free AC3 codecs available online. VirtualDub must be closed when this is installed.

Here is one I use: http://www.digitalfaq.com/downloads/forum/ac3acm.zip
Unzip this file, follow the instructions in the README.TXT file to get it up and running.

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Finally, save the AVI
http://www.digitalfaq.com/forum/uplo.../vdubedit6.gif

All done. You've got an uncompressed AVI with uncompressed WAV audio, and an NLE should open up the file and have zero problems reading it. Edit away!