Welcome to BC.
I don't think Apple supports MPEG. Lord knows I've tried everything I can think of to import MPEG 2 into iDVD, and iMovie.
But I use Toast Titanium 7 to export video and convert it other formats on the Mac.
From the Titanium Toast help menu;
QUOTE
Exporting Video
Toast can convert video files to a variety of different types and export to your hard disk.
To export video:
1 Click the Video tab at the top of the Toast window.
2 Click the Formats tab in the left drawer and choose DVD-Video.
3 Drag and drop video files into the Content Area from your hard disk or the Media Browser.
To use the Media Browser, click the Media tab in the left drawer. Choose Movies to browse your Movies folder and choose DVD to browse DVD-Video discs and VIDEO_TS folders. See Using the Media Browser. You can also use the "+" button at the bottom of the Toast window to add files.
You can add any QuickTime supported video files, such as DV, AVI, MOV, HDV (1080i/720p), and MPEG4. You can also add files that QuickTime doesn't support such as iMovie HD projects, MPEG-2, VOB and DivX.
4 Select the video(s) you want to export.
5 Click Export at the bottom of the Toast window, or choose Disc > Export Video.
6 Choose the Format to convert to. There are several options:
• DV: Creates a standard definition DV file that can be used with iDVD and iMovie.
• DV 16:9: Creates a widescreen DV file that can be imported into iMovie HD, Final Cut Pro or Express.
• HDV 720p: Creates a high definition DV file for use in iMovie HD, or Final Cut HD projects. Recommended if your content is HD 720p.
• HDV 1080i: Creates a high definition DV file for use in iMovie HD, or Final Cut HD projects. Recommended if your content is HD 1080i.
• QuickTime Movie: Offers full access to all possible QuickTime codecs, selected from the Options... button.
• MPEG-4: Creates an MPEG-4 file using Apple's MPEG-4 codec. Recommended for converting to lower resolutions and for streaming applications.
• H.264: Creates an MPEG-4 Advanced Video Codec using Apple's H.264 codec, offering high quality at lower bitrates.
• 3G: Creates an MPEG-4 file using Apple's 3GPP codec. Recommended for playback on portable and handheld devices such as mobile phones.
• DivX: Creates a DivX AVI file, offering high quality and low storage requirements. Recommended for portable DivX players.
• For PSP: Creates an MPEG-4 file formatted for playback on the PSP (PlayStation Portable). See Exporting Video to the PSPTM.
• For iTunes: Extracts the audio portion of the video and creates an M4A audio file for use in iTunes.
• Ogg Vorbis: Extracts the audio portion of the video and creates an OGG audio file.
7 Enter a name and choose the location to export to.
8 Click Save.
Toast displays a progress bar and status information as it exports the video.
Hope this helps.