I discovered one can bring in .wmv files into Womble Mpeg Video Editor and one can combine them on the timeline and convert them to XVID format. I also discovered that one can bring in XVID files and cut them using the Mpeg Video Editor. This is kind of handy if you are interested in extracting a certain scene for whatever reason. Though I will admit the program doesn't really want to accept it as easily as it would mpeg2, I thought it worth mentioning just the same.
It might be worth playing around with Womble MVE to see if it can do additional things other than just work with Mpeg2. This was a pleasant surprise to me.
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