Hard to read your post with the caps lock on
PPro isn't that good at editing MPEG files - I have had terrible problems with that. Best is to capture the video in some uncompressed format or at most say a DV format and edit in PPro in that format. You can then output the corrected video in MPEG2 format for DVD authoring of whatever
I even PPro didn't like MJPEG encoded video files. While they imported okay and you could edit them when output to MPEG the would lose audio sync and so far Adobe hasn't been able to help me