Transitions make static in Arcsoft Showbiz MPEG2

[Canopus Smoker]

Hello:

I'm brand new here, but since I just got my Canopus ADVC 110 and Firewire card, I'll probably be back often.

I'm capturing VHS video in ArcSoft Showbiz 2 and editing it there. Everything is great EXCEPT...after I finish editing a project and export it to MPEG2, the transitions (wipes, etc.) cause a weird static noise. It's not there in the editing process, only after I export to MPEG2 (I want to burn a no-menus DVD later and I can only do that by later using this MPEG in Roxio).

Any idea why that would be?

[Canopus Smoker]

I think I know now: I was editing with MPEGs. AVI's from now on!