I'm trying to import a .mpg (MPEG-1) file into my project. When I add it to my time line it just appears black. However, if I open the file in Windows Media player or plays just fine. (Tried the same thing at home on my mac using Final Cut Express and it reads it fine. However when I export it as a .mov the quality is low.)

Any ideas why Vegas Movie Studio (Platinum 7.0) can not view this file?

Thanks.