[MKV] Need help extracting H264 video from an MKV into an editable medium

[SinanDira]

The short story is that I want to edit an H.264 video that I have inside a Matroska container. Despite having no former experience at all in video editing, considering I've got a copy of Adobe Premiere Elements 2, I thought it to be an easy deal. But I got stuck though. Below are the details and my progress in achieving my goal.

File info:
Size: about 8 gigabytes.
Length: more than an hour.
Dimensions, about 1920x1080 (a little bit less).
Video Codec: H.264.
Container: MKV.
1 video track, 2 FLAC sound tracks and 2 subs tracks.

Problem: Premiere wasn't able to edit the Matroska or rough H.264 video. I thought that it could be because version 2 is outdated. I tested Elements 8 and Sony Vegas 11, but surprisingly none of them could edit Matroska or container-less H.264 video.

My progress so far:
Step 1: I have 2 initial options:
Option 1: to directly edit and censor the video while inside the MKV container. Are there any video editors that can do this?
Option 2 (if option 1 is not available): I have to extract the content from the matroska, edit it, and merge it again.

I have gone with option 2 with MKVextractGUI.
Current status: Step 1: option 2 we got the movie in an H.264 video without a container. Now we have 2 options:

Step 1: option 2/Step 2:
Option 1: to edit the H.264 video without a container. Is this possible? Which video editor can do it?
Option 2: to contain it in some container, edit it, then extract it, and re-merge it in the MKV. Won't this damage the video's high quality? If it's possible without causing damage, what's the best container/video-editor combination?

I have gone with option 2 in step 2, but I got stuck. In reading about video containers in Wikipedia, it turned out that MOV is the only H.264 container that Premiere Elements supports properly if I remember right. I'm not sure if the old version 2 supports this or not, but it's worth trying. Can the video be added to a MOV container without losing quality? If it can be, do you know the right software?

That's all what I have, and I'm kind of stuck as I told you. I have spent a few hours trying different freeware video extractors and combiners. I think that it's time to ask for help. So, help is surely appreciated!

[_Al_]

Try TsMuxer, remux it to TS, or m2ts ,Vegas can read those transport streams, not sure about Premiere.

[SinanDira]

Try TsMuxer, remux it to TS, or m2ts ,Vegas can read those transport streams, not sure about Premiere.

Works, I can remux, and Vegas can read them (my Premiere can't). But even though I am not checking the "change FPS" box, the the remuxed video has a higher FPS in all cases, and plays faster than original. In case of M2TS, the FPS is 59.94 comparing to the original of 27.97. Any ideas?

EDIT: I don't understand, the FPS of the video I am remuxing is 27.97, but the video plays faster after remuxing unless I change the FPS down to 24. Also, tsMuxer doubles the FPS, and I don't know the point. Whatever, my current problem is solved, thanks. I may come back and post here as I advance in my process.