Always worth checking the faq - sometimes the mpeg isn't quite the right 'flavour' for an editing app.
Take a look at:
Hello there. I am having problems importing video clips into pinnacle studio 9. If i have an avi or mpeg file on my computer which i have downloaded from the net or something, pinnacle will allow me to import it and edit it fine. The problem comes when i want to rip a clip from a dvd i have. Pinnacle will simply not allow me to edit the avi or mpeg file that i produce. This seems really weird, i was wondering if anyone has any ideas. Thanks in advance people.
Sorry about that. I'll remember to check the FAQ next time. Thanks for the reply.