When I try to extract an MP3 audio file from a home-burned CD into VideoFactory 2.0 (build 69), it either doesn't see the files or indicates that the format is not recognized. Do I need a plug-in or the like to extract MP3?
You can't extract MP3 files from a data CD. You can only extract audio tracks from an Audio CD. Since this is a data CD, simply browse to your CD-ROM drive and drag the .mp3 file to the timeline just like you would a file from your hard drive.