A MPEG-Stream is not made for editing. Normaly you would do the cutting and editing in an AVI and then convert it to MPEG.
For DVC2 Users this would be a step back, because we allready habe mpeg. Then you could work with a normal TV Card.
We capture direct to MPEG and dont want to convert it back to AVI and loose quality and time. But sometimes you have to do it. Thanks to a litte program that was written by the Author of TMPGEnc. This program saves us the step to encode to AVI. The program is called VFAPIReader.

Start it, and click on "AddJob". Now you can open an MPEG-File, DVD2AVI-Project or a TMPGEnc-Projekt.

Deselect "Audio Output", because when you leave it selected then the whole audio stream will be written as PCM to the output file. And we allready habe the mp2 file.
Then click on "OK" and hit "Convert".
Now a little AVI-File is created. It it there are only Information about how the file is decoded.
You can use this little AVI in every AVI-Editing program.