I have both of these programs, and they work very well for converting various files to mpegII for dvd video authoring. The only files I am having a problem with are .mkv files. When I try to convert them (with EITHER program) they will convert the .mkv file to 99%, then crash. I get the generic "(program name here) has encountered a problem and needs to close". It only happens when I try to convert .mkv files. Any other file formats (.avi, .h264, .mov. etc.) convert to mpegII with no problems. Don't know if it matters, but I have CUDA activated on both programs. I have tried converting with CUDA on AND off on both programs. Any help regarding this issue would be greatly appreciated.
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Freemake which is a free video converter will convert to other video formats OK and cut and join video clips but won't do any other video editing.
VMW5 had a free update yesterday, some of it specifically to do with handling MKVs. Download it and see if it males a difference.