Hi guys, i have finally found a way to encode wmv files to mpeg files using tpmgenc.

Previously i was not able to do this because the new type of wmv files are protected by Microsoft.

To be able to do encode using tpmgenc, download windows media player 9, Windows Media Player Codecs 8.0 and Windows Media Encoder 9 from www.microsoft.com

After installing everything, restart the PC
And open tpmgenc to try and convert to vcd.
It should work without any error messages.