Windows Movie Maker 2 (MM2), for all its limitations can be a really handy tool. One thing this is a pain is a lack of native support for mpeg2 video in the WinXP version.
Here's a method I found to be able import mpeg2 encoded video into Windows Movie Maker 2. The basic idea is if you install the appropriate DirectShow compatible filters, then MM2 can handle the video. You read more about it here. The trick is finding the right filters. I had success with this combination:
- Mpeg2 Splitter - Install Nero Burning ROM.
- Video Filter – GPL mpeg-1/2 from sourceforge
- Audio Filter – AC3 Filter from sourceforge
