I know you have moved on to a new release but I have'nt had time to check it out yet but I have been having trouble with Audacity which you might want to check into
BTW, if you come accross some application for converting 3pg videos into AVI or MPEG and vise-versa, I'm very interested in something that can do that
ffmpeg can indeed do that. But it needs to be re-compiled with support for that codec.
There is some information on it here